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
XLY Consumer Discretionary Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund
XLB Materials 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
BAC Bank of America Corp
F Ford Motor Co
NSC Norfolk Southern Corp
BRK.B Berkshire Hathaway Inc
TXN Texas Instruments Inc
JPM JPMorgan Chase & Co
ALL Allstate Corp
MMM 3M Company
QCOM QUALCOMM Inc
CAT Caterpillar Inc
ORCL Oracle Corporation
MO Altria Group Inc
EMR Emerson Electric Co
USB US Bancorp
MON Monsanto Co
CMCSA Comcast Corp
V Visa Inc

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.