Key Momentum Shifts

  • Consumer Staples Enters Leading: Consumer Staples (XSJ) has moved into the Leading quadrant, signalling improving relative strength and momentum.
  • Energy Moves into Weakening: Energy (XEJ) has shifted from Leading into Weakening, despite recording the strongest daily gain of 1.78%.
  • Resources Remains Weakening: Resources (XJR) continues to retain relatively strong positioning but is experiencing declining momentum.
  • Materials Remains Weakening: Materials (XMJ) remains in Weakening despite gaining 0.42% on the day.
  • Financials Remains Improving: Financials (XFJ) continues to show recovering relative momentum.
  • Industrials Remains Improving: Industrials (XNJ) remains in Improving, indicating continued momentum recovery.
  • Information Technology Remains Lagging: Information Technology (XIJ) remains in Lagging after recording the weakest daily performance at -2.60%.
  • Five Sectors Remain Weakening: Energy, Resources, Materials, Utilities and Health Care are positioned in Weakening, indicating that several relatively strong sectors are losing momentum.

The latest Relative Rotation Graph for 7 September 2026 presents a changing ASX sector momentum landscape. Consumer Staples (XSJ) has moved into Leading, becoming the only sector currently occupying the Leading quadrant. Energy (XEJ), previously the established leader, has moved into Weakening despite recording the strongest daily performance. Financials (XFJ) and Industrials (XNJ) remain in Improving, while Information Technology (XIJ), Consumer Discretionary (XDJ), Real Estate (XPJ) and Communication Services (XTJ) remain in Lagging.

Momentum Breakdown by Quadrant

ASX Sector Relative Momentum Chart (at the closing price of 07/09/2026). Powered by: amibroker.com.

Leading Quadrant

Consumer Staples has entered the Leading quadrant, marking the most significant positive transition in the latest RRG. Its position in the upper-right area of the chart indicates that the sector has established both positive relative strength and positive momentum.

The transition is particularly notable because Consumer Staples gained 0.45% in the previous session but declined 0.60% on 7 September. The move into Leading therefore reflects its broader relative momentum trajectory rather than simply its latest daily price performance.

Continued movement toward the upper-right would reinforce Consumer Staples' Leadership position. Conversely, a movement back toward the centre would suggest that its recent momentum improvement is beginning to moderate.

Improving Quadrant

Financials (XFJ) remains in Improving, indicating that relative momentum continues to recover. The sector gained 0.15% on 7 September, supporting its gradual improvement on the RRG.

Its current trajectory suggests that Financials could eventually challenge the Leading quadrant if its movement toward the upper-right continues. However, further improvement in relative strength would be required to confirm a more established leadership position.

Industrials (XNJ) also remains in Improving. The sector gained 0.20%, and its position indicates that relative momentum continues to recover from weaker levels.

Industrials remains relatively close to the central area of the RRG. A sustained move further upward and to the right would provide stronger confirmation that the sector is developing into a more established momentum leader.

Weakening Quadrant

Energy (XEJ) has moved into Weakening after previously occupying the Leading quadrant. This represents one of the most important changes in the latest chart.

The transition is notable because Energy recorded a 1.78% gain on 7 September, the strongest daily performance among all twelve sectors. However, the RRG indicates that its relative momentum is weakening despite the strong daily advance. This demonstrates the difference between short-term price performance and the broader relative momentum trend measured by the rotation framework.

Resources (XJR) and Materials (XMJ) also remain in Weakening. Resources gained 0.60%, while Materials advanced 0.42%, but both sectors remain below the momentum midpoint on the RRG.

Their positions suggest that previous relative strength is losing momentum. A sustained move back above the horizontal midpoint would be required to signal renewed positive momentum.

Utilities (XUJ) and Health Care (XHJ) are also positioned in Weakening. Both sectors remain relatively strong on the relative-strength axis but are experiencing deteriorating momentum.

The concentration of Energy, Resources, Materials, Utilities and Health Care in the Weakening quadrant indicates that several sectors with relatively strong positioning are no longer receiving the same momentum support.

Lagging Quadrant

Consumer Discretionary (XDJ) and Real Estate (XPJ) remain in Lagging, reflecting weak relative strength and subdued momentum. Consumer Discretionary declined 0.46%, while Real Estate was almost unchanged at -0.06%.

Communication Services (XTJ) also remains in Lagging after declining 0.76%. Its position indicates that the sector has yet to establish a convincing recovery in relative momentum.

Information Technology (XIJ) remains the weakest sector on the RRG. It recorded a substantial 2.60% decline on 7 September, the largest daily fall among all twelve sectors. Its position deep within the Lagging quadrant reinforces the negative momentum signal.

Further movement toward the lower-left would strengthen the bearish momentum profile for Information Technology, while a Reversal toward the centre would provide an early indication of stabilisation.

Bottom Line

The 7 September 2026 ASX RRG shows a meaningful change in sector leadership, with Consumer Staples (XSJ) entering Leading while Energy (XEJ) moves into Weakening. Consumer Staples is now the only sector occupying the Leading quadrant, indicating the strongest combination of relative strength and momentum.

Financials (XFJ) and Industrials (XNJ) remain in Improving, providing the most notable potential sources of future leadership. Meanwhile, Energy, Resources, Materials, Utilities and Health Care remain in Weakening, suggesting that several sectors with strong relative positions are experiencing deteriorating momentum.

Information Technology (XIJ) remains firmly in Lagging and recorded the weakest daily performance at -2.60%. Consumer Discretionary, Real Estate and Communication Services also remain in Lagging.

Overall, the latest RRG indicates a selective rotation in ASX sector momentum. The transition of Consumer Staples into Leading is the key positive development, while Energy's move from Leading into Weakening represents the clearest deterioration. Continued movement by Financials and Industrials toward the upper-right would provide stronger confirmation of a broader improvement in market momentum.