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
XLP Consumer Staples Sector SPDR Fund
XLF Financial Select Sector SPDR Fund
XLV Health Care Select Sector SPDR Fund
XLU Utilities Select Sector SPDR Fund

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

DIS The Walt Disney Co
XOM Exxon Mobil Corp
MMM 3M Company
UTX United Technologies Corp
SBUX Starbucks Corp
JNJ Johnson and Johnson
UPS United Parcel Service Inc
V Visa Inc
QCOM QUALCOMM Inc
BA The Boeing Co
GOOG Google Inc
HON Honeywell International Inc
SLB Schlumberger Ltd
TWX Time Warner Inc
WAG Walgreens
COST Costco Wholesale Corporation
LMT Lockheed Martin Corp
COP ConocoPhillips
BAC Bank of America Corp
CMCSA Comcast Corp
CVS CVS Caremark Corp
GE General Electric Co
EMR Emerson Electric Co
BK The Bank of New York Mellon Corp
NWSA News Corp
UNH UnitedHealth Group Inc
RTN Raytheon Co
GD General Dynamics Corp
MO Altria Group Inc
MS Morgan Stanley
F Ford Motor Co
DOW Dow Chemical Co
EXC Exelon Corp 

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.