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
XLF Financial Select Sector SPDR Fund
XLB Materials Select Sector SPDR Fund
XLK Technology 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
SBUX Starbucks Corp
WFC Wells Fargo & Company
TXN Texas Instruments Inc
INTC Intel Corp
AMZN Amazon.com Inc
MMM 3M Company
MET MetLife Inc
AAPL Apple Inc
EMR Emerson Electric Co
UPS United Parcel Service Inc
MA MasterCard Inc
RTN Raytheon Co
HON Honeywell International Inc

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.