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).

XLY Consumer Discretionary Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund
XLF Financial Select Sector SPDR Fund
XLK Technology Select Sector SPDR Fund
XLV Health Care Select Sector SPDR Fund

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

HON Honeywell International Inc
UTX United Technologies Corp
BK The Bank of New York Mellon Corp
GE General Electric Co
CAT Caterpillar Inc
F Ford Motor Co
CMCSA Comcast Corp
QCOM QUALCOMM Inc
RTN Raytheon Co
CSCO Cisco Systems Inc
AAPL Apple Inc
MDT Medtronic Inc
SBUX Starbucks Corp
EMR Emerson Electric Co
MA MasterCard Inc
MO Altria Group Inc
V Visa Inc
BAX Baxter International Inc
BRK.B Berkshire Hathaway Inc
GS Goldman Sachs Group Inc
ORCL Oracle Corporation
TXN Texas Instruments Inc
AMGN Amgen Inc
DD E I du Pont de Nemours and Co
MS Morgan Stanley
WFC Wells Fargo & Company
MET MetLife Inc
NWSA News Corp
AMZN Amazon.com Inc
MON Monsanto Co

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.