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

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

BK The Bank of New York Mellon Corp
MET MetLife Inc
HON Honeywell International Inc
MMM 3M Company
GS Goldman Sachs Group Inc
IBM International Business Machines Corp
CVX Chevron Corp
UNP Union Pacific Corp
FDX FedEx Corporation
GILD Gilead Sciences Inc
C Citigroup Inc
HAL Halliburton Co
NSC Norfolk Southern Corp
DD E I du Pont de Nemours and Co
WMB Williams Companies Inc
COST Costco Wholesale Corporation
CSCO Cisco Systems Inc
NWSA News Corp

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.