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

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

HD Home Depot Inc
APC Anadarko Petroleum Corp
NSC Norfolk Southern Corp
UTX United Technologies Corp
COP ConocoPhillips
MS Morgan Stanley
MMM 3M Company
CVX Chevron Corp
LOW Lowe's Companies Inc
XOM Exxon Mobil Corp
EMR Emerson Electric Co
GS Goldman Sachs Group Inc
NOV National Oilwell Varco Inc
JPM JPMorgan Chase & Co
UNP Union Pacific Corp
AEP American Elec Pwr Co Inc
QCOM QUALCOMM Inc
T AT&T Inc
LMT Lockheed Martin Corp
BHI Baker Hughes Inc
WAG Walgreens
F Ford Motor Co
EBAY eBay Inc
HAL Halliburton Co
DIS The Walt Disney Co
JNJ Johnson and Johnson
DOW Dow Chemical Co
PM Philip Morris International Inc
C Citigroup Inc
AMZN Amazon.com Inc
NKE Nike Inc
BRK.B Berkshire Hathaway Inc
GILD Gilead Sciences Inc
TWX Time Warner Inc
DD E I du Pont de Nemours and Co
FCX Freeport-McMoRan Copper & Gold Inc
SPG Simon Property Group Inc
GD General Dynamics Corp
V Visa Inc
CVS CVS Caremark Corp
ABT Abbott Laboratories
SO Southern Co
CL Colgate Palmolive Co
MO Altria Group Inc
AAPL Apple Inc
HON Honeywell International Inc
PG Procter & Gamble Co
CAT Caterpillar Inc
LLY Eli Lilly and Co
VZ Verizon Communications Inc
KO The Coca Cola Co
TGT Target Corporation
BK The Bank of New York Mellon Corp
WMB Williams Companies Inc
UPS United Parcel Service Inc
GE General Electric Co
AMGN Amgen Inc
MRK Merck & Co Inc
MON Monsanto Co
BMY Bristol-Myers Squibb Company
SLB Schlumberger Ltd

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.