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
XLI Industrial Select Sector SPDR Fund
XLB Materials Select Sector SPDR Fund
XLK Technology Select Sector SPDR Fund
XLF Financial Select Sector SPDR Fund

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

UTX United Technologies Corp
HON Honeywell International Inc
XOM Exxon Mobil Corp
NSC Norfolk Southern Corp
FCX Freeport-McMoRan Copper & Gold Inc
UNP Union Pacific Corp
MS Morgan Stanley
CMCSA Comcast Corp
C Citigroup Inc
GOOG Google Inc
COF Capital One Financial Corp
F Ford Motor Co
GE General Electric Co
FDX FedEx Corporation
WFC Wells Fargo & Company
AMZN Amazon.com Inc
MA MasterCard Inc
UNH UnitedHealth Group Inc

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.