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
XLE Energy Select Sector SPDR Fund
XLP Consumer Staples Sector SPDR Fund
XLK Technology Select Sector SPDR Fund
XLY Consumer Discretionary Sector SPDR Fund

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

C Citigroup Inc
XOM Exxon Mobil Corp
CL Colgate Palmolive Co
CVX Chevron Corp
AXP American Express Co
V Visa Inc
DOW Dow Chemical Co
MCD McDonald's Corporation
ALL Allstate Corp
GOOG Google Inc
BAC Bank of America Corp
FCX Freeport-McMoRan Copper & Gold Inc
JPM JPMorgan Chase & Co
MET MetLife Inc
UTX United Technologies Corp

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.