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
XLB Materials Select Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund
XLE Energy Select Sector SPDR Fund

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

F Ford Motor Co
WFC Wells Fargo & Company
BAC Bank of America Corp
CAT Caterpillar Inc
COST Costco Wholesale Corporation
JPM JPMorgan Chase & Co
TWX Time Warner Inc
V Visa Inc
DOW Dow Chemical Co
TGT Target Corporation
GOOG Google Inc
QCOM QUALCOMM Inc
NKE Nike Inc
EMR Emerson Electric Co
BK The Bank of New York Mellon Corp
GS Goldman Sachs Group Inc
NOV National Oilwell Varco Inc
MDT Medtronic Inc
PFE Pfizer Inc
HAL Halliburton Co
XOM Exxon Mobil Corp
CVX Chevron Corp
OXY Occidental Petroleum Corp
INTC Intel Corp
MET MetLife Inc

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.