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
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).

GE General Electric Co
BK The Bank of New York Mellon Corp
EBAY eBay Inc
ABT Abbott Laboratories
MMM 3M Company
UTX United Technologies Corp
MDT Medtronic Inc
HAL Halliburton Co
USB US Bancorp
BA The Boeing Co
LLY Eli Lilly and Co
HON Honeywell International Inc
AAPL Apple Inc
DD E I du Pont de Nemours and Co
TWX Time Warner Inc
JPM JPMorgan Chase & Co
UPS United Parcel Service Inc
CVX Chevron Corp
MA MasterCard Inc
ACN Accenture PLC
BHI Baker Hughes Inc
BAX Baxter International Inc
ORCL Oracle Corporation
FDX FedEx Corporation
NKE Nike Inc
PEP Pepsico Inc
QCOM QUALCOMM Inc
UNP Union Pacific Corp
V Visa Inc
CL Colgate Palmolive Co
LMT Lockheed Martin Corp
DOW Dow Chemical Co
KO The Coca Cola Co
GD General Dynamics Corp
NWSA News Corp
CSCO Cisco Systems Inc
RTN Raytheon Co
CMCSA Comcast Corp

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.