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).

XLF Financial Select Sector SPDR Fund
XLP Consumer Staples Sector SPDR Fund
XLY Consumer Discretionary Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund
XLV Health Care Select 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
ABT Abbott Laboratories
CL Colgate Palmolive Co
MS Morgan Stanley
JNJ Johnson and Johnson
HON Honeywell International Inc
MA MasterCard Inc
GS Goldman Sachs Group Inc
MET MetLife Inc
BMY Bristol-Myers Squibb Company
BAC Bank of America Corp
C Citigroup Inc
V Visa Inc
COST Costco Wholesale Corporation
HD Home Depot Inc
USB US Bancorp
BA The Boeing Co
NKE Nike Inc
HAL Halliburton Co
GILD Gilead Sciences Inc
GD General Dynamics Corp
GOOG Google Inc
UNP Union Pacific Corp
LMT Lockheed Martin Corp
MDT Medtronic Inc
CVS CVS Caremark Corp
PM Philip Morris International Inc

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.