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
XLB Materials Select Sector SPDR Fund
XLV Health Care Select Sector SPDR Fund

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

TXN Texas Instruments Inc
UNP Union Pacific Corp
NSC Norfolk Southern Corp
NWSA News Corp
FDX FedEx Corporation
MDT Medtronic Inc
AXP American Express Co
BMY Bristol-Myers Squibb Company
BHI Baker Hughes Inc
DIS The Walt Disney Co
AEP American Elec Pwr Co Inc
QCOM QUALCOMM Inc
CL Colgate Palmolive Co
SBUX Starbucks Corp
BAX Baxter International Inc
SO Southern Co
MA MasterCard Inc
V Visa Inc

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