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
XLP Consumer Staples 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).

C Citigroup Inc
MCD McDonald's Corporation
WFC Wells Fargo & Company
UPS United Parcel Service Inc
CL Colgate Palmolive Co
V Visa Inc
BAC Bank of America Corp
ALL Allstate Corp
CVX Chevron Corp
AXP American Express Co
COP ConocoPhillips
JPM JPMorgan Chase & Co
XOM Exxon Mobil Corp
KO The Coca Cola Co
TWX Time Warner Inc
CVS CVS Caremark Corp
GOOG Google Inc
GE General Electric Co
USB US Bancorp
JNJ Johnson and Johnson
MA MasterCard Inc
BRK.B Berkshire Hathaway Inc

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.