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
XLE Energy Select Sector SPDR Fund
XLB Materials Select Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund

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

F Ford Motor Co
BAC Bank of America Corp
BK The Bank of New York Mellon Corp
DD E I du Pont de Nemours and Co
GS Goldman Sachs Group Inc
COST Costco Wholesale Corporation
MET MetLife Inc
WFC Wells Fargo & Company
EMC EMC Corp
CAT Caterpillar Inc
CVX Chevron Corp
JPM JPMorgan Chase & Co
BRK.B Berkshire Hathaway Inc
C Citigroup Inc
EMR Emerson Electric Co
MDT Medtronic Inc
USB US Bancorp
OXY Occidental Petroleum Corp
TGT Target Corporation
UNP Union Pacific Corp
NOV National Oilwell Varco Inc
HAL Halliburton Co
SLB Schlumberger Ltd
AXP American Express Co
APC Anadarko Petroleum Corp
APA Apache Corp
BA The Boeing Co
DVN Devon Energy Corp
COP ConocoPhillips

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.