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).

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

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

SLB Schlumberger Ltd
NSC Norfolk Southern Corp
MA MasterCard Inc
COF Capital One Financial Corp
TXN Texas Instruments Inc
UNP Union Pacific Corp
SBUX Starbucks Corp
ALL Allstate Corp
XOM Exxon Mobil Corp
UTX United Technologies Corp
EMR Emerson Electric Co
BAX Baxter International Inc
BHI Baker Hughes Inc
MDT Medtronic Inc
DVN Devon Energy Corp
ACN Accenture PLC
MMM 3M Company
SPG Simon Property Group Inc
NKE Nike Inc
GD General Dynamics Corp
CVX Chevron Corp
QCOM QUALCOMM Inc
CAT Caterpillar Inc

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.