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
XLB Materials Select Sector SPDR Fund
XLV Health Care Select Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund
XLE Energy Select Sector SPDR Fund

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

USB US Bancorp
UNP Union Pacific Corp
XOM Exxon Mobil Corp
EBAY eBay Inc
TWX Time Warner Inc
HON Honeywell International Inc
MMM 3M Company
HD Home Depot Inc
SBUX Starbucks Corp
CMCSA Comcast Corp
UPS United Parcel Service Inc
LOW Lowe's Companies Inc
UTX United Technologies Corp
MA MasterCard Inc
NWSA News Corp
COP ConocoPhillips
ORCL Oracle Corporation
COST Costco Wholesale Corporation
DVN Devon Energy Corp
V Visa Inc
DIS The Walt Disney Co
APC Anadarko Petroleum Corp
GE General Electric Co
COF Capital One Financial Corp

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.