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).

XLF Financial Select Sector SPDR Fund
XLY Consumer Discretionary Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund

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

INTC Intel Corp
JPM JPMorgan Chase & Co
C Citigroup Inc
MSFT Microsoft Corp
HD Home Depot Inc
EMR Emerson Electric Co
EBAY eBay Inc
GS Goldman Sachs Group Inc
ALL Allstate Corp
AXP American Express Co
BAC Bank of America Corp
PG Procter & Gamble Co
LOW Lowe's Companies Inc

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