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).

GS Goldman Sachs Group Inc
C Citigroup Inc
DD E I du Pont de Nemours and Co
BK The Bank of New York Mellon Corp
BAC Bank of America Corp
MET MetLife Inc
JPM JPMorgan Chase & Co
TXN Texas Instruments Inc
SBUX Starbucks Corp
BRK.B Berkshire Hathaway Inc
EMC EMC Corp
APA Apache Corp
DVN Devon Energy Corp
NKE Nike Inc
IBM International Business Machines Corp
COF Capital One Financial Corp
WFC Wells Fargo & Company
APC Anadarko Petroleum Corp
FCX Freeport-McMoRan Copper & Gold Inc
DOW Dow Chemical Co
UNP Union Pacific Corp

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.