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).

XLB Materials Select Sector SPDR Fund
XLY Consumer Discretionary Sector SPDR Fund
XLV Health Care Select Sector SPDR Fund
XLF Financial Select Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund

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

TWX Time Warner Inc
C Citigroup Inc
MMM 3M Company
GOOG Google Inc
JPM JPMorgan Chase & Co
XOM Exxon Mobil Corp
LMT Lockheed Martin Corp
HON Honeywell International Inc
GILD Gilead Sciences Inc
LLY Eli Lilly and Co
EBAY eBay Inc
UPS United Parcel Service Inc
GD General Dynamics Corp
UTX United Technologies Corp
BK The Bank of New York Mellon Corp
JNJ Johnson and Johnson
HPQ Hewlett-Packard Co
UNH UnitedHealth Group Inc
UNP Union Pacific Corp
USB US Bancorp
NSC Norfolk Southern Corp
GS Goldman Sachs Group Inc
VZ Verizon Communications Inc
SBUX Starbucks Corp
SLB Schlumberger Ltd
WFC Wells Fargo & Company
LOW Lowe's Companies Inc
MA MasterCard Inc
WMB Williams Companies Inc
DVN Devon Energy Corp
SPG Simon Property Group Inc
CAT Caterpillar Inc
MDT Medtronic Inc
COST Costco Wholesale Corporation
COP ConocoPhillips

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.