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
XLE Energy Select Sector SPDR Fund
XLP Consumer Staples Sector SPDR Fund

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

ORCL Oracle Corp
ALL Allstate Corp
WAG Walgreen Co
EMR Emerson Electric Co
AXP American Express Company
BRK.B Berkshire Hathaway'B'
CVX Chevron Corporation
UTX United Technologies
V Visa Inc

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