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
XLF Financial Select Sector SPDR Fund
XLI Industrial 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).

TWX Time Warner Inc
MET MetLife Inc
MMM 3M Company
EMR Emerson Electric Co
GE General Electric Co
JPM JPMorgan Chase & Co
C Citigroup Inc
HON Honeywell International Inc
MCD McDonald's Corporation
UPS United Parcel Service Inc
UNP Union Pacific Corp
BRK.B Berkshire Hathaway Inc
XOM Exxon Mobil Corp
HPQ Hewlett-Packard Co
MSFT Microsoft Corp
WFC Wells Fargo & Company
UTX United Technologies Corp
UNH UnitedHealth Group Inc
ABT Abbott Laboratories
LMT Lockheed Martin Corp
NWSA News Corp

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.