ASX Sector Momentum: Leadership Shifts as Technology and Materials Enter Improving

Robert Luong

09 November 2026 12:00 AM AEDT

ASX Sector Momentum: Leadership Shifts as Technology and Materials Enter Improving

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Key Highlights

Four Sectors in Leading: Real Estate (XPJ), Communication Services (XTJ), Industrials (XNJ) and Financials (XFJ) occupy the upper-right quadrant, indicating positive relative strength and momentum.
Four Sectors in Weakening: Consumer Staples (XSJ), Consumer Discretionary (XDJ), Health Care (XHJ) and Utilities (XUJ) remain to the right of the vertical axis but below the horizontal axis.
Two Sectors Enter Improving: Information Technology (XIJ) and Materials (XMJ) are positioned in the upper-left quadrant, signalling positive momentum despite negative relative strength.
Resources and Energy Remain Lagging: Resources (XJR) and Energy (XEJ) are positioned in the lower-left quadrant, reflecting negative relative strength and momentum.
Leadership Is More Concentrated: Only four of the twelve sectors are in Leading, while eight are distributed across the other three quadrants.

The latest chart therefore shows a transition in sector Leadership rather than broad concentration in the Leading quadrant. The two Improving sectors are showing a more constructive momentum configuration, while the four Weakening sectors retain positive relative strength but have lost momentum. The plotted trails also highlight differences in the distance from the central axes and in recent direction. The latest endpoint, rather than an earlier part of the trail, determines the current quadrant classification.

ASX Sector Momentum Quadrants

ASX Sector Relative Momentum Chart (at the closing price of 06/11/2026). Powered by AmiBroker.

Four Sectors Maintain Leading Positions

Four of the twelve sector indices are positioned in the Leading quadrant. Real Estate (XPJ), Communication Services (XTJ), Industrials (XNJ) and Financials (XFJ) all have latest endpoints above the horizontal axis and to the right of the vertical axis. This Placement indicates positive relative strength and positive momentum against the benchmark. Although this remains a meaningful leadership group, it is narrower than the broad concentration observed in the previous chart.

Real Estate is positioned furthest into the upper-right area among the four leaders, with its latest endpoint showing a strong positive momentum reading. Communication Services and Industrials are also comfortably above the horizontal axis, although their relative positions differ. Financials is closer to the central reference area than some of the other leaders, making its classification more sensitive to a further move towards either axis. The distances between the endpoints and the central intersection indicate that leadership strength is not uniform across these sectors.

The plotted trails show that sector positioning has evolved during the six-period look-back rather than moving in a straight line. Changes in direction reflect fluctuations in relative strength and momentum. Continued positioning above both central axes would support the persistence of leadership. A move below the horizontal axis, while relative strength remained positive, would signal a rotation into Weakening. Conversely, movement further upward and rightward would reinforce the current Leading configuration.

Four Sectors Remain in Weakening

Consumer Staples (XSJ), Consumer Discretionary (XDJ), Health Care (XHJ) and Utilities (XUJ) occupy the Weakening quadrant. Their latest endpoints remain to the right of the vertical axis but below the horizontal axis, indicating positive relative strength alongside negative momentum. These sectors therefore retain a relative-strength advantage against the benchmark, but their momentum readings have fallen below the zero line.

The four sectors are positioned at different distances from the central axes. Consumer Staples is close to the vertical axis but materially below the horizontal midpoint, while Consumer Discretionary and Health Care are further to the right and remain in negative-momentum territory. Utilities is positioned further right but also well below the horizontal axis. Their placement indicates that positive relative strength alone is not sufficient to confirm renewed leadership while momentum remains negative.

A sustained move above the horizontal axis, while remaining to the right of the vertical axis, would return any of these sectors to Leading. Conversely, a move to the left of the vertical axis while momentum remained negative would signal a rotation into Lagging. The next RRG readings will help establish whether the current weakening phase stabilises or develops into more pronounced relative underperformance.

Information Technology and Materials Move into Improving

Information Technology (XIJ) and Materials (XMJ) are positioned in the Improving quadrant. Both latest endpoints are above the horizontal axis but remain to the left of the vertical axis, indicating positive momentum despite negative relative strength. This configuration suggests that their momentum has improved relative to the benchmark, although neither sector has yet established positive relative strength or entered Leading.

Information Technology is positioned further to the right and higher within Improving than Materials, indicating a comparatively stronger momentum position on the chart. Materials is close to the horizontal boundary and substantially further left, so its Improving classification is more sensitive to any renewed loss of momentum. The trails show that both sectors have moved upward from weaker positions, but the latest endpoints remain the decisive reference for quadrant membership.

A move to the right of the vertical axis while remaining above the horizontal axis would confirm a transition into Leading. If either sector falls below the horizontal axis before relative strength improves, it would return to Lagging. Continued upward and rightward movement would therefore provide stronger confirmation that the improving momentum is translating into a broader relative recovery.

Resources and Energy Remain in Lagging

Resources (XJR) and Energy (XEJ) occupy the Lagging quadrant. Both endpoints are positioned to the left of the vertical axis and below the horizontal axis, indicating negative relative strength and negative momentum. Their position confirms that they remain the weakest groups on the current chart, with neither having established an upward rotation into Improving.

Resources is located in the lower-left region, while Energy is positioned substantially further left and lower, reflecting a more pronounced negative relative-strength and momentum configuration. The trails show fluctuations during the displayed period, but the latest points remain within Lagging. A sustained move above the horizontal axis would provide the first indication of improving momentum and shift either sector into Improving. A subsequent move to the right of the vertical axis would be required to establish positive relative strength and enter Leading.

Market Momentum Outlook

The current RRG configuration is more dispersed, with four sectors in Leading, four in Weakening, two in Improving and two in Lagging. Real Estate, Communication Services, Industrials and Financials retain positive relative strength and momentum, while the four Weakening sectors remain above the vertical axis but below the horizontal midpoint. Information Technology and Materials show improving momentum, although their relative strength remains negative. Resources and Energy continue to display the weakest relative positioning. The next readings will be important in determining whether the Improving sectors can rotate into Leading, whether the Weakening group regains positive momentum, and whether Resources and Energy begin to recover. The RRG describes relative technical momentum and strength; it does not, by itself, establish fundamental conditions or forecast absolute returns.

Bottom Line

The ASX sector momentum chart for 6 November 2026 shows four sectors in Leading: Real Estate, Communication Services, Industrials and Financials. Consumer Staples, Consumer Discretionary, Health Care and Utilities are in Weakening, while Information Technology and Materials occupy Improving. Resources and Energy remain in Lagging. The distribution indicates a narrowing of established leadership, alongside early momentum improvement in Technology and Materials. The four Weakening sectors Warrant monitoring for a recovery above the horizontal axis, while the Lagging sectors need sustained upward movement before a rotation into Improving can be confirmed. Subsequent RRG readings will show whether these momentum shifts develop into more durable changes in relative positioning.

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