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
XLF Financial Select 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).

UNP Union Pacific Corp
MET MetLife Inc
C Citigroup Inc
HON Honeywell International Inc
JNJ Johnson and Johnson
UTX United Technologies Corp
TGT Target Corporation
GD General Dynamics Corp
BK The Bank of New York Mellon Corp
WFC Wells Fargo & Company
MCD McDonald's Corporation
LMT Lockheed Martin Corp
DOW Dow Chemical Co
WAG Walgreens
CVS CVS Caremark Corp
RTN Raytheon Co

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