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
XLY Consumer Discretionary Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund
XLB Materials Select Sector SPDR Fund
XLK Technology Select Sector SPDR Fund

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

C Citigroup Inc
DD E I du Pont de Nemours and Co
MS Morgan Stanley
CAT Caterpillar Inc
UTX United Technologies Corp
DVN Devon Energy Corp
APC Anadarko Petroleum Corp
MMM 3M Company
DOW Dow Chemical Co
BRK.B Berkshire Hathaway Inc
SLB Schlumberger Ltd
GD General Dynamics Corp
EXC Exelon Corp
GS Goldman Sachs Group Inc
CVS CVS Caremark Corp
HON Honeywell International Inc
GILD Gilead Sciences Inc
DIS The Walt Disney Co
MET MetLife Inc
APA Apache Corp
OXY Occidental Petroleum Corp
F Ford Motor Co
COP ConocoPhillips
WMB Williams Companies Inc
TXN Texas Instruments Inc
BK The Bank of New York Mellon Corp
HAL Halliburton Co
NSC Norfolk Southern Corp

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.