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
XLP Consumer Staples Sector SPDR Fund
XLK Technology Select Sector SPDR Fund
XLB Materials Select Sector SPDR Fund

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

GE General Electric Co
BRK.B Berkshire Hathaway Inc
BAX Baxter International Inc
MET MetLife Inc
NWSA News Corp
JPM JPMorgan Chase & Co
C Citigroup Inc
XOM Exxon Mobil Corp
V Visa Inc
PG Procter & Gamble Co
F Ford Motor Co

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