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).

XLF Financial Select Sector SPDR Fund
XLY Consumer Discretionary Sector SPDR Fund
XLK Technology Select Sector SPDR Fund
XLE Energy Select Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund

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

MET MetLife Inc
MA MasterCard Inc
USB US Bancorp
UNP Union Pacific Corp
C Citigroup Inc
GE General Electric Co
AMZN Amazon.com Inc
BAC Bank of America Corp
GS Goldman Sachs Group Inc
NSC Norfolk Southern Corp
MMM 3M Company
DD E I du Pont de Nemours and Co
V Visa Inc
WMB Williams Companies Inc
KO The Coca Cola Co
SLB Schlumberger Ltd
CVX Chevron Corp

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.