Key Momentum Shifts

  • Consumer Staples Remains Leading: Consumer Staples (XSJ) is the only sector positioned in the Leading quadrant, maintaining the strongest combination of relative strength and momentum.
  • Financials and Industrials Remain Improving: Financials (XFJ) and Industrials (XNJ) continue to occupy the Improving quadrant, signalling recovering relative momentum.
  • Energy Moves into Weakening: Energy (XEJ) is positioned in Weakening despite gaining 0.22% on 8 September.
  • Utilities and Health Care Weaken: Utilities (XUJ) and Health Care (XHJ) remain in Weakening despite positive daily performances of 0.59% and 0.45%, respectively.
  • Technology Remains Lagging: Information Technology (XIJ) remains in Lagging after declining 1.76%, highlighting continued relative weakness.
  • Consumer Discretionary Remains Lagging: Consumer Discretionary (XDJ) recorded the weakest daily performance at -1.88% and remains firmly positioned in Lagging.
  • Five Sectors Remain Weakening: Energy, Utilities, Resources, Materials and Health Care are positioned in Weakening, indicating that several relatively strong sectors are experiencing deteriorating momentum.

The latest Relative Rotation Graph for 8 September 2026 shows a selective rotation in ASX sector momentum. Consumer Staples (XSJ) remains the only sector in Leading, while Financials (XFJ) and Industrials (XNJ) continue to recover in Improving. Energy (XEJ), Utilities (XUJ), Resources (XJR), Materials (XMJ) and Health Care (XHJ) occupy the Weakening quadrant, while Real Estate (XPJ), Communication Services (XTJ), Consumer Discretionary (XDJ) and Information Technology (XIJ) remain in Lagging. This follows the same quadrant framework used in the previous ASX RRG analysis.

Momentum Breakdown by Quadrant

ASX Sector Relative Momentum Chart (at the closing price of 08/09/2026). Powered by: amibroker.com.

Leading Quadrant

Consumer Staples (XSJ) remains in the Leading quadrant, making it the strongest-positioned sector on the latest RRG. Its upper-right position indicates that the sector continues to combine positive relative strength with positive momentum.

The sector declined 1.31% on 8 September, demonstrating that RRG positioning does not necessarily correspond with the strongest daily price performance. Continued movement further toward the upper-right would reinforce its leadership, while movement back toward the centre could signal moderating momentum.

Improving Quadrant

Financials (XFJ) and Industrials (XNJ) remain in Improving, indicating that their relative momentum is continuing to recover.

Financials declined 1.63% on 8 September, while Industrials fell 0.74%. Despite these negative daily performances, their positions on the RRG indicate improving relative momentum compared with sectors already positioned in Lagging.

A continued move toward the upper-right would strengthen the case for both sectors to transition into Leading and become potential sources of broader market leadership.

Weakening Quadrant

Energy (XEJ), Utilities (XUJ), Resources (XJR), Materials (XMJ) and Health Care (XHJ) remain in Weakening. This indicates that these sectors retain relatively stronger positioning but are experiencing deteriorating momentum.

Energy declined slightly in relative terms despite a 0.22% daily gain, while Utilities and Health Care advanced 0.59% and 0.45%, respectively. Resources and Materials declined 0.44% and 0.57%.

The concentration of five sectors in Weakening suggests that several areas with previously stronger relative positions are losing momentum. A sustained move back above the RRG midpoint would be required to indicate renewed momentum.

Lagging Quadrant

Real Estate (XPJ), Communication Services (XTJ), Consumer Discretionary (XDJ) and Information Technology (XIJ) remain in Lagging, reflecting weaker relative strength and subdued momentum.

Consumer Discretionary recorded the largest decline among the twelve sectors at 1.88%, followed by Information Technology at 1.76%. Real Estate and Communication Services also weakened by 1.46% and 0.73%, respectively.

Information Technology remains particularly vulnerable given its position deep within the Lagging quadrant. Further movement toward the lower-left would reinforce its bearish momentum profile, while a Reversal toward the centre would provide an early indication of stabilisation.

Bottom Line

The 8 September 2026 ASX RRG shows a defensive sector momentum structure, with Consumer Staples (XSJ) remaining the only sector in Leading. Financials (XFJ) and Industrials (XNJ) continue to provide the clearest potential sources of future Leadership as they remain in Improving.

Meanwhile, Energy, Utilities, Resources, Materials and Health Care remain in Weakening, suggesting that several sectors with relatively strong positioning are experiencing declining momentum. Technology, Consumer Discretionary, Real Estate and Communication Services remain in Lagging, with Technology and Consumer Discretionary recording the weakest daily performances.

Overall, the latest RRG indicates selective rather than broad-based momentum strength. A sustained move by Financials and Industrials toward the upper-right would provide stronger evidence of improving market breadth, while further deterioration in the Weakening and Lagging groups would reinforce the defensive character of current ASX sector rotation.