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

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

XOM Exxon Mobil Corp
BRK.B Berkshire Hathaway Inc
WFC Wells Fargo & Company
JPM JPMorgan Chase & Co
F Ford Motor Co
ABT Abbott Laboratories
JNJ Johnson and Johnson
MS Morgan Stanley
UTX United Technologies Corp
AXP American Express Co
HON Honeywell International Inc
GS Goldman Sachs Group Inc
UPS United Parcel Service Inc
FDX FedEx Corporation
GE General Electric Co
NKE Nike Inc
UNP Union Pacific Corp
BK The Bank of New York Mellon Corp
ACN Accenture PLC
EMR Emerson Electric Co
HD Home Depot Inc
LOW Lowe's Companies Inc
MMM 3M Company
DD E I du Pont de Nemours and Co
NSC Norfolk Southern Corp
DOW Dow Chemical Co
DIS The Walt Disney Co
BAC Bank of America Corp
GILD Gilead Sciences Inc
BA The Boeing Co
CL Colgate Palmolive Co
CVX Chevron Corp
HAL Halliburton Co
V Visa Inc
MET MetLife Inc
IBM International Business Machines Corp
MA MasterCard Inc
RTN Raytheon Co
LLY Eli Lilly and Co
MO Altria Group Inc
NWSA News Corp
KO The Coca Cola Co
GOOG Google Inc
MSFT Microsoft Corp
APC Anadarko Petroleum Corp

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.