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
XLI Industrial Select Sector SPDR Fund
XLP Consumer Staples Sector SPDR Fund

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

EMR Emerson Electric Co
ORCL Oracle Corporation
NWSA News Corp
AMGN Amgen Inc
CSCO Cisco Systems Inc
GE General Electric Co
DIS The Walt Disney Co
XOM Exxon Mobil Corp
PG Procter & Gamble Co
CL Colgate Palmolive Co
DOW Dow Chemical Co
CMCSA Comcast Corp
UTX United Technologies Corp
BRK.B Berkshire Hathaway Inc
BK The Bank of New York Mellon Corp

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