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
XLV Health Care Select Sector SPDR Fund
XLK Technology Select Sector SPDR Fund

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

MET MetLife Inc
WFC Wells Fargo & Company
GILD Gilead Sciences Inc
UTX United Technologies Corp
AXP American Express Co
NKE Nike Inc
JNJ Johnson and Johnson
F Ford Motor Co
CVS CVS Caremark Corp
CMCSA Comcast Corp
RTN Raytheon Co
WMB Williams Companies Inc
BAC Bank of America Corp
SLB Schlumberger Ltd

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.