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
XLP Consumer Staples Sector SPDR Fund
XLF Financial Select Sector SPDR Fund

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

F Ford Motor Co
CSCO Cisco Systems Inc
UPS United Parcel Service Inc
COP ConocoPhillips
SBUX Starbucks Corp
EMR Emerson Electric Co
KO The Coca Cola Co
DELL Dell Inc
FCX Freeport-McMoRan Copper & Gold Inc
GOOG Google Inc
ORCL Oracle Corporation
NKE Nike Inc

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