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
XLK Technology Select Sector SPDR Fund
XLF Financial Select Sector SPDR Fund

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

UNP Union Pacific Corp
USB US Bancorp
MA MasterCard Inc
NSC Norfolk Southern Corp
MMM 3M Company
BK The Bank of New York Mellon Corp
CL Colgate Palmolive Co
KO The Coca Cola Co
AXP American Express Co
MET MetLife Inc
BMY Bristol-Myers Squibb Company
BAX Baxter International Inc
WAG Walgreens

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