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
XLV Health Care Select Sector SPDR Fund

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

UNP Union Pacific Corp
OXY Occidental Petroleum Corp
DD E I du Pont de Nemours and Co
MMM 3M Company
NSC Norfolk Southern Corp
PEP Pepsico Inc

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