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
XLB Materials Select Sector SPDR Fund
XLV Health Care Select Sector SPDR Fund
XLF Financial Select Sector SPDR Fund
XLK Technology Select Sector SPDR Fund

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

TXN Texas Instruments Inc
MDT Medtronic Inc
F Ford Motor Co
TWX Time Warner Inc
MA MasterCard Inc
DIS The Walt Disney Co
SBUX Starbucks Corp
CMCSA Comcast Corp
NWSA News Corp
V Visa Inc
NKE Nike Inc
MON Monsanto Co
XOM Exxon Mobil Corp
SPG Simon Property Group Inc
ABT Abbott Laboratories
DD E I du Pont de Nemours and Co
BAX Baxter International Inc
WMT Wal-Mart Stores Inc

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