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
XLB Materials Select Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund
XLE Energy Select Sector SPDR Fund
XLK Technology Select Sector SPDR Fund

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

MET MetLife Inc
UNP Union Pacific Corp
DOW Dow Chemical Co
USB US Bancorp
WFC Wells Fargo & Company
JPM JPMorgan Chase & Co
MS Morgan Stanley
XOM Exxon Mobil Corp
GE General Electric Co
DD E I du Pont de Nemours and Co
WMB Williams Companies Inc
QCOM QUALCOMM Inc
V Visa Inc
APC Anadarko Petroleum Corp
OXY Occidental Petroleum Corp
HAL Halliburton Co
COP ConocoPhillips

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.