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
XLK Technology Select Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund
XLB Materials Select Sector SPDR Fund
XLE Energy Select Sector SPDR Fund

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

WFC Wells Fargo & Company
NWSA News Corp
IBM International Business Machines Corp
XOM Exxon Mobil Corp
BRK.B Berkshire Hathaway Inc
BAC Bank of America Corp
JNJ Johnson and Johnson
EMR Emerson Electric Co
UPS United Parcel Service Inc
TXN Texas Instruments Inc
NSC Norfolk Southern Corp
JPM JPMorgan Chase & Co
F Ford Motor Co
COP ConocoPhillips
NKE Nike Inc
CMCSA Comcast Corp
HON Honeywell International Inc
MS Morgan Stanley
DVN Devon Energy Corp
CVX Chevron Corp
GE General Electric Co
BK The Bank of New York Mellon Corp
QCOM QUALCOMM Inc
UTX United Technologies Corp
MRK Merck & Co Inc
LOW Lowe's Companies Inc
COF Capital One Financial Corp
ACN Accenture PLC
CL Colgate Palmolive Co
TWX Time Warner Inc
UNP Union Pacific Corp
SPG Simon Property Group Inc
TGT Target Corporation
GS Goldman Sachs Group Inc
AAPL Apple Inc
GILD Gilead Sciences Inc
AMZN Amazon.com Inc
DIS The Walt Disney Co
AMGN Amgen Inc
MMM 3M Company
SO Southern Co
CSCO Cisco Systems Inc

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.