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
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).

MS Morgan Stanley
C Citigroup Inc
SPG Simon Property Group Inc
UTX United Technologies Corp
DVN Devon Energy Corp
DD E I du Pont de Nemours and Co
MMM 3M Company
BRK.B Berkshire Hathaway Inc
UNP Union Pacific Corp
DIS The Walt Disney Co
APC Anadarko Petroleum Corp
SLB Schlumberger Ltd
EMC EMC Corp
SBUX Starbucks Corp
MET MetLife Inc
DOW Dow Chemical Co
NKE Nike Inc
TXN Texas Instruments Inc
APA Apache Corp
ACN Accenture PLC
CL Colgate Palmolive Co
HON Honeywell International Inc
COF Capital One Financial Corp
UNH UnitedHealth Group Inc
GD General Dynamics Corp
QCOM QUALCOMM Inc
NSC Norfolk Southern Corp
V Visa Inc
KO The Coca Cola Co
GS Goldman Sachs Group Inc
INTC Intel Corp
EMR Emerson Electric Co
MSFT Microsoft Corp
OXY Occidental Petroleum Corp
MO Altria Group Inc
CVS CVS Caremark Corp
ORCL Oracle Corporation
EBAY eBay Inc
CMCSA Comcast Corp
WFC Wells Fargo & Company
LMT Lockheed Martin Corp
T AT&T Inc
PM Philip Morris International Inc

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.