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).

XLI Industrial Select Sector SPDR Fund
XLP Consumer Staples Sector SPDR Fund
XLF Financial Select Sector SPDR Fund
XLK Technology Select Sector SPDR Fund
XLY Consumer Discretionary 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
HON Honeywell International Inc
F Ford Motor Co
V Visa Inc
MA MasterCard Inc
CL Colgate Palmolive Co
GE General Electric Co
CVX Chevron Corp
ORCL Oracle Corporation
COP ConocoPhillips
INTC Intel Corp
APA Apache Corp
USB US Bancorp
COST Costco Wholesale Corporation
ACN Accenture PLC
KO The Coca Cola Co
QCOM QUALCOMM Inc
BRK.B Berkshire Hathaway Inc
TXN Texas Instruments Inc
ALL Allstate Corp
HD Home Depot Inc
UTX United Technologies Corp

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.