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).

XLI Industrial Select Sector SPDR Fund
XLF Financial Select Sector SPDR Fund
XLP Consumer Staples Sector SPDR Fund
XLB Materials Select Sector SPDR Fund
XLY Consumer Discretionary Sector SPDR Fund

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

USB US Bancorp
AEP American Elec Pwr Co Inc
MMM 3M Company
BRK.B Berkshire Hathaway Inc
CVX Chevron Corp
GS Goldman Sachs Group Inc
LLY Eli Lilly and Co
JPM JPMorgan Chase & Co
MRK Merck & Co Inc
GE General Electric Co
WMB Williams Companies Inc
IBM International Business Machines Corp
BHI Baker Hughes Inc
NOV National Oilwell Varco Inc
HON Honeywell International Inc
F Ford Motor Co
APA Apache Corp
MDT Medtronic Inc
DD E I du Pont de Nemours and Co
NKE Nike Inc
CVS CVS Caremark Corp
AAPL Apple Inc
SPG Simon Property Group Inc
WFC Wells Fargo & Company
SO Southern Co
BAX Baxter International Inc
PG Procter & Gamble Co
BMY Bristol-Myers Squibb Company
V Visa Inc
PM Philip Morris International Inc
NWSA News Corp
NSC Norfolk Southern Corp
SBUX Starbucks Corp

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.