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).

XLE Energy Select Sector SPDR Fund
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).

WMT Wal-Mart Stores Inc
APA Apache Corp
INTC Intel Corp
JPM JPMorgan Chase & Co
CVX Chevron Corp
BMY Bristol-Myers Squibb Company
FDX FedEx Corporation
GS Goldman Sachs Group Inc
NKE Nike Inc
TGT Target Corporation
TXN Texas Instruments Inc
UPS United Parcel Service Inc
DIS The Walt Disney Co

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