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
XLY Consumer Discretionary 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).

WFC Wells Fargo & Company
UTX United Technologies Corp
BRK.B Berkshire Hathaway Inc
BAC Bank of America Corp
JPM JPMorgan Chase & Co
F Ford Motor Co
QCOM QUALCOMM Inc
ORCL Oracle Corporation
MMM 3M Company
CMCSA Comcast Corp
COST Costco Wholesale Corporation
MDT Medtronic Inc
FDX FedEx Corporation
RTN Raytheon Co
MO Altria Group Inc
SBUX Starbucks Corp

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.