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
XLK Technology Select Sector SPDR Fund
XLE Energy Select Sector SPDR Fund

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

MS Morgan Stanley
BAC Bank of America Corp
HON Honeywell International Inc
BRK.B Berkshire Hathaway Inc
BK The Bank of New York Mellon Corp
COF Capital One Financial Corp
TXN Texas Instruments Inc
EMC EMC Corp
GS Goldman Sachs Group Inc
BHI Baker Hughes Inc
SBUX Starbucks Corp
WFC Wells Fargo & Company
SLB Schlumberger Ltd
ALL Allstate Corp
XOM Exxon Mobil Corp
BAX Baxter International Inc
CL Colgate Palmolive Co
MA MasterCard Inc
UTX United Technologies Corp
GD General Dynamics Corp
SPG Simon Property Group Inc
CMCSA Comcast Corp
DVN Devon Energy Corp
INTC Intel Corp
EMR Emerson Electric Co
GILD Gilead Sciences Inc
MCD McDonald's Corporation
JNJ Johnson and Johnson
APA Apache Corp
GOOG Google Inc
NSC Norfolk Southern Corp
HAL Halliburton Co
MDT Medtronic Inc
MO Altria Group Inc
EBAY eBay Inc
COP ConocoPhillips
AMZN Amazon.com Inc
OXY Occidental Petroleum Corp
KO The Coca Cola Co

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.