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

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

MMM 3M Company
DIS The Walt Disney Co
UTX United Technologies Corp
INTC Intel Corp
XOM Exxon Mobil Corp
TWX Time Warner Inc
JNJ Johnson and Johnson
MCD McDonald's Corporation
COP ConocoPhillips
SBUX Starbucks Corp
AMZN Amazon.com Inc
UPS United Parcel Service Inc
QCOM QUALCOMM Inc
TXN Texas Instruments Inc
NOV National Oilwell Varco Inc
WAG Walgreens
HON Honeywell International Inc
IBM International Business Machines Corp
CMCSA Comcast Corp
SLB Schlumberger Ltd
EMR Emerson Electric Co
CVX Chevron Corp
GE General Electric Co
EXC Exelon Corp
CVS CVS Caremark Corp
MO Altria Group Inc
APC Anadarko Petroleum Corp

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.