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).

XLK Technology Select Sector SPDR Fund
XLF Financial Select Sector SPDR Fund
XLY Consumer Discretionary Sector SPDR Fund

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

JPM JPMorgan Chase & Co
ORCL Oracle Corporation
TXN Texas Instruments Inc
IBM International Business Machines Corp
GS Goldman Sachs Group Inc
CSCO Cisco Systems Inc
PFE Pfizer Inc
BRK.B Berkshire Hathaway Inc
WFC Wells Fargo & Company
UPS United Parcel Service Inc

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