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
XLP Consumer Staples Sector SPDR Fund

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

JPM JPMorgan Chase & Co
EMR Emerson Electric Co
HD Home Depot Inc
MO Altria Group Inc
PG Procter & Gamble Co
CVX Chevron Corp
COST Costco Wholesale Corporation

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.