Key Highlights

  • Three Sectors Maintain Leading Positions: Real Estate (XPJ), Communication Services (XTJ) and Industrials (XNJ) remain in the upper-right quadrant, indicating positive relative strength and momentum.
  • Four Sectors Remain in Weakening: Consumer Discretionary (XDJ), Financials (XFJ), Health Care (XHJ) and Utilities (XUJ) occupy the lower-right quadrant, retaining positive relative strength but displaying negative momentum.
  • Three Sectors Enter or Remain in Improving: Information Technology (XIJ), Materials (XMJ) and Resources (XJR) are positioned in the upper-left quadrant, signalling positive momentum despite negative relative strength.
  • Energy and Consumer Staples Remain Lagging: Energy (XEJ) and Consumer Staples (XSJ) occupy the lower-left quadrant, reflecting negative relative strength and momentum.
  • Leadership Remains Concentrated: Only three of the twelve sectors are in Leading, while nine are distributed across Improving, Weakening and Lagging.

The latest chart therefore shows a more dispersed momentum configuration, with the Improving quadrant gaining representation from Materials and Resources alongside Information Technology. The three Leading sectors continue to demonstrate positive relative strength and momentum, although the smaller Leadership group indicates that market leadership remains relatively narrow. Meanwhile, four sectors remain in Weakening, highlighting a loss of momentum despite their positive relative strength. The plotted trails illustrate the evolution of sector positioning over the six-period look-back, with the latest endpoint determining the current quadrant classification.

ASX Sector Momentum Quadrants

ASX Sector Relative Momentum Chart (at the closing price of 09/11/2026). Powered by AmiBroker.

Three Sectors Maintain Leading Positions

Three of the twelve sector indices are positioned in the Leading quadrant. Real Estate (XPJ), Communication Services (XTJ) and Industrials (XNJ) all have latest endpoints above the horizontal axis and to the right of the vertical axis. This configuration indicates positive relative strength and positive momentum against the benchmark. Although these sectors retain their leadership positions, the smaller group suggests that relative market leadership remains concentrated.

Real Estate is positioned furthest into the upper-right area among the three leaders, displaying a strong positive momentum reading. Communication Services is also positioned comfortably above the horizontal axis, while Industrials occupies a comparatively lower position within the quadrant. The distances between the latest endpoints and the central intersection indicate that leadership strength differs across the three sectors.

The plotted trails demonstrate that sector positioning has evolved during the six-period look-back rather than following a straight trajectory. 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, further upward and rightward movement would reinforce the current Leading configuration.

Four Sectors Remain in Weakening

Consumer Discretionary (XDJ), Financials (XFJ), 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. Financials is particularly close to the horizontal boundary, making its classification sensitive to a relatively small change in momentum. Consumer Discretionary and Health Care occupy more deeply negative momentum positions, while Utilities is positioned considerably further below the horizontal axis. These differences indicate that the degree of momentum deterioration is not uniform across the group.

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, Materials and Resources Move into Improving

Information Technology (XIJ), Materials (XMJ) and Resources (XJR) are positioned in the Improving quadrant. Their 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 none has yet established positive relative strength or entered Leading.

Information Technology is positioned furthest to the right and highest within Improving, indicating a comparatively stronger momentum position on the chart. Materials is positioned further left but maintains a positive momentum reading. Resources is closer to the horizontal boundary, making its Improving classification more sensitive to a renewed loss of momentum.

The plotted trails show upward movements from weaker positions, although 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 any sector falls below the horizontal axis before relative strength improves, it would return to Lagging. Continued upward and rightward movement would provide stronger confirmation that improving momentum is translating into a broader relative recovery.

Energy and Consumer Staples Remain in Lagging

Energy (XEJ) and Consumer Staples (XSJ) 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 positions confirm that they remain the weakest groups in the current relative rotation configuration.

Energy is positioned substantially further left and lower than Consumer Staples, reflecting a more pronounced negative relative-strength and momentum configuration. Consumer Staples is closer to the central reference area, although its momentum remains materially negative. The trails show fluctuations during the displayed period, but neither sector has established a transition into Improving.

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 shows three sectors in Leading, four in Weakening, three in Improving and two in Lagging. Real Estate, Communication Services and Industrials retain positive relative strength and momentum, while the four Weakening sectors remain above the vertical axis but below the horizontal midpoint.

Information Technology, Materials and Resources demonstrate improving momentum, although their relative strength remains negative. Energy and Consumer Staples 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 the Lagging sectors 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 9 November 2026 shows three sectors in Leading: Real Estate, Communication Services and Industrials. Consumer Discretionary, Financials, Health Care and Utilities remain in Weakening, while Information Technology, Materials and Resources occupy Improving. Energy and Consumer Staples remain in Lagging. The distribution indicates concentrated established leadership alongside strengthening momentum in Technology, Materials and Resources. The Weakening sectors Warrant monitoring for a recovery above the horizontal axis, while the Lagging sectors require 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.