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).

XLF Financial Select Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund
XLU Utilities Select Sector SPDR Fund
XLY Consumer Discretionary Sector SPDR Fund
XLE Energy Select Sector SPDR Fund

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

COP ConocoPhillips
HON Honeywell International Inc
AXP American Express Co
JPM JPMorgan Chase & Co
WFC Wells Fargo & Company
MMM 3M Company
MET MetLife Inc
CL Colgate Palmolive Co
SO Southern Co
ALL Allstate Corp
COF Capital One Financial Corp
PG Procter & Gamble Co
PEP Pepsico Inc
GE General Electric Co
NOV National Oilwell Varco Inc
BHI Baker Hughes Inc
GD General Dynamics Corp
APA Apache Corp
XOM Exxon Mobil Corp
GOOG Google Inc
INTC Intel Corp
CSCO Cisco Systems Inc
EBAY eBay Inc
RTN Raytheon Co
UNH UnitedHealth Group Inc

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.