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
XLF Financial Select Sector SPDR Fund
XLK Technology Select Sector SPDR Fund
XLB Materials Select Sector SPDR Fund

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

F Ford Motor Co
COF Capital One Financial Corp
AXP American Express Co
GS Goldman Sachs Group Inc
JPM JPMorgan Chase & Co
WFC Wells Fargo & Company
JNJ Johnson and Johnson
MMM 3M Company
FDX FedEx Corporation
UPS United Parcel Service Inc
MET MetLife Inc
XOM Exxon Mobil Corp
EMR Emerson Electric Co
USB US Bancorp
LOW Lowe's Companies Inc
UTX United Technologies Corp
COP ConocoPhillips
DOW Dow Chemical Co
NKE Nike Inc
BAC Bank of America Corp
HAL Halliburton Co
HD Home Depot Inc
IBM International Business Machines Corp
MSFT Microsoft Corp
NOV National Oilwell Varco Inc

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.