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
XLY Consumer Discretionary Sector SPDR Fund
XLE Energy Select Sector SPDR Fund

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

ORCL Oracle Corporation
UTX United Technologies Corp
INTC Intel Corp
CVX Chevron Corp
TWX Time Warner Inc
COP ConocoPhillips
MO Altria Group Inc
GS Goldman Sachs Group Inc
BK The Bank of New York Mellon Corp
MMM 3M Company
GILD Gilead Sciences Inc
C Citigroup Inc
TXN Texas Instruments Inc
APA Apache Corp
WMB Williams Companies Inc
MSFT Microsoft Corp
NWSA News Corp
USB US Bancorp
DD E I du Pont de Nemours and Co
WMT Wal-Mart Stores Inc
PM Philip Morris International Inc
HON Honeywell International Inc
SLB Schlumberger Ltd
EBAY eBay Inc
DIS The Walt Disney Co
WAG Walgreens
MS Morgan Stanley
DVN Devon Energy Corp
UNP Union Pacific Corp
GE General Electric Co
MRK Merck & Co Inc

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.