Key Momentum Shifts

  • Five Sectors Remain in Leading: Health Care (XHJ), Utilities (XUJ), Energy (XEJ), Resources (XJR) and Materials (XMJ) remain in the Leading quadrant.
  • Health Care Maintains Leadership: XHJ remains the strongest-positioned sector, located furthest into the upper-right area of the RRG.
  • Utilities Remains Strong: XUJ continues to occupy a firm Leading position, supported by strong relative strength and momentum.
  • Consumer Staples Enters Improving: XSJ has moved into the Improving quadrant, signalling strengthening relative momentum.
  • Information Technology Moves into Weakening: XIJ has shifted into the Weakening quadrant, indicating that its previous Leadership is losing momentum.
  • Five Sectors Remain in Lagging: Consumer Discretionary (XDJ), Communication Services (XTJ), Industrials (XNJ), Financials (XFJ) and Real Estate (XPJ) remain in Lagging.
  • Momentum Remains Selective: The latest RRG shows five sectors in Leading, one in Improving, one in Weakening and five in Lagging.

The latest Relative Rotation Graph for 27 August 2026 shows a moderately polarised momentum structure across the Australian Equity market. Five sectors remain in Leading, while Consumer Staples has moved into Improving and Information Technology has rotated into Weakening. Five sectors continue to occupy the Lagging quadrant.

The shift in Consumer Staples is notable because it represents an emerging improvement among previously weaker sectors. At the same time, Information Technology's move into Weakening indicates that leadership is becoming less broad-based.

Momentum Breakdown by Quadrant

ASX Sector Relative Momentum Chart (at the closing price of 276/08/2026). Powered by: amibroker.com.

Leading Quadrant

Health Care (XHJ), Utilities (XUJ), Energy (XEJ), Resources (XJR) and Materials (XMJ) remain positioned in the Leading quadrant.

Health Care (XHJ) maintains the strongest relative momentum within the group. Its position deep in the upper-right area of the RRG indicates strong relative strength and momentum, keeping it as the most established sector leader.

Utilities (XUJ) also remains firmly in Leading and is positioned well into the upper-right area. Its strong position indicates sustained relative strength and momentum, although its future trajectory should be monitored for any movement toward the centre.

Energy (XEJ) continues to occupy the Leading quadrant, remaining above the horizontal midline. Its position is closer to the centre than Health Care and Utilities, however, suggesting that its leadership is less established.

Resources (XJR) and Materials (XMJ) also remain in Leading. Both sectors continue to sit above the key RRG midlines, supporting their positive relative momentum. Their trajectories will be important in determining whether their leadership strengthens or begins to moderate.

Improving Quadrant

Consumer Staples (XSJ) has moved into the Improving quadrant.

The move represents a meaningful change in the sector's momentum profile, as XSJ has transitioned from Lagging into an area associated with improving relative momentum. Its latest position indicates that relative performance is strengthening, although it has not yet reached the Leading quadrant.

A continued movement toward the upper-right would provide stronger confirmation of a sustained improvement in Consumer Staples' relative momentum.

Weakening Quadrant

Information Technology (XIJ) has moved into the Weakening quadrant.

The shift indicates that the sector's previous relative strength is losing momentum. Although XIJ remains relatively close to the Leading area, its current trajectory suggests a deterioration in momentum.

Continued movement toward the centre and into the lower-right area would increase the likelihood of a further deterioration in its relative position. This makes Information Technology an important sector to monitor in the near term.

Lagging Quadrant

Consumer Discretionary (XDJ), Communication Services (XTJ), Industrials (XNJ), Financials (XFJ) and Real Estate (XPJ) remain in the Lagging quadrant.

These five sectors remain below the key RRG midlines, indicating that their relative momentum has not yet recovered sufficiently to enter Improving.

The concentration of five sectors in Lagging highlights that momentum remains selective across the ASX sector universe. A sustained rotation by these sectors toward the centre and subsequently into Improving would be required to confirm a broader recovery in market momentum.

Strategic Summary

The latest RRG shows five sectors in Leading, one in Improving, one in Weakening and five in Lagging. Health Care remains the strongest relative momentum sector, while Utilities, Energy, Resources and Materials continue to provide leadership.

The most notable positive development is Consumer Staples' move into Improving, which provides an early indication that momentum may be beginning to broaden beyond the established leaders.

Conversely, Information Technology's rotation into Weakening is an important development. Its loss of momentum could reduce the breadth of the current leadership structure if the deterioration continues.

Overall, the momentum structure remains constructive but selective. Health Care and Utilities continue to provide the strongest leadership, while Consumer Staples is the key emerging sector to watch. At the same time, Information Technology requires monitoring for further deterioration, while the five sectors in Lagging need sustained improvement before a broader recovery in ASX sector momentum can be confirmed.