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
XLI Industrial Select Sector SPDR Fund
XLB Materials Select Sector SPDR Fund
XLU Utilities Select Sector SPDR Fund

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

BAC Bank of America Corp
C Citigroup Inc
GS Goldman Sachs Group Inc
UNP Union Pacific Corp
JPM JPMorgan Chase & Co
MET MetLife Inc
BA The Boeing Co
WFC Wells Fargo & Company
USB US Bancorp
PM Philip Morris International Inc
RTN Raytheon Co
MO Altria Group Inc
AXP American Express Co
PEP Pepsico Inc
KO The Coca Cola Co
DOW Dow Chemical Co
XOM Exxon Mobil Corp
SO Southern Co
MMM 3M Company
F Ford Motor Co
AEP American Elec Pwr Co Inc
LMT Lockheed Martin Corp

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.