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).

C Citigroup Inc
BAC Bank of America Corp
GS Goldman Sachs Group Inc
ABT Abbott Laboratories
CL Colgate Palmolive Co
BK The Bank of New York Mellon Corp
MS Morgan Stanley
JNJ Johnson and Johnson
HON Honeywell International Inc
MA MasterCard Inc
USB US Bancorp
UNP Union Pacific Corp
MCD McDonald's Corporation
JPM JPMorgan Chase & Co
CVS CVS Caremark Corp
WFC Wells Fargo & Company
MET MetLife Inc
COST Costco Wholesale Corporation
PM Philip Morris International Inc
BMY Bristol-Myers Squibb Company
RTN Raytheon Co
MDT Medtronic Inc
V Visa Inc
WAG Walgreens
KO The Coca Cola Co
NKE Nike Inc
PEP Pepsico Inc
MO Altria Group Inc
PFE Pfizer Inc
GE General Electric Co
PG Procter & Gamble Co
MRK Merck & Co Inc
LMT Lockheed Martin Corp
EMR Emerson Electric Co
LLY Eli Lilly and Co
AXP American Express Co
NSC Norfolk Southern Corp
COF Capital One Financial Corp
BRK.B Berkshire Hathaway Inc
F Ford Motor Co

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.