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
XLF Financial Select Sector SPDR Fund

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

AXP American Express Co
DIS The Walt Disney Co
DD E I du Pont de Nemours and Co
MMM 3M Company
MON Monsanto Co
NWSA News Corp
CMCSA Comcast Corp
ALL Allstate Corp
EMR Emerson Electric Co
MA MasterCard Inc
C Citigroup Inc
FCX Freeport-McMoRan Copper & Gold Inc
F Ford Motor Co
MS Morgan Stanley
RTN Raytheon Co

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