If the stock market can move sectors and stocks, which sectors and stocks are most likely to move in step with the stock market? Sectors and individual stocks most highly correlated to the overall market can use the S&P 500 SPDR ETF (SPY) as a directional indicator.

The following sectors are most correlated the S&P 500 SPDR ETF (SPY).

XLY Consumer Discretionary Sector SPDR Fund
XLE Energy Select Sector SPDR Fund
XLF Financial Select Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund
XLK Technology Select Sector SPDR Fund

The following individual stocks are most correlated the S&P 500 SPDR ETF (SPY).

NWSA News Corp
USB US Bancorp
COST Costco Wholesale Corporation
COF Capital One Financial Corp
MCD McDonald's Corporation
CVX Chevron Corp
HAL Halliburton Co
C Citigroup Inc
JPM JPMorgan Chase & Co
UNP Union Pacific Corp
CSCO Cisco Systems Inc
XOM Exxon Mobil Corp
TXN Texas Instruments Inc
UPS United Parcel Service Inc
NKE Nike Inc

Dave Mecklenburg is the Editor-in-Chief of TigerSharkTrading.com.