Key Momentum Shifts

  • Consumer Staples Remains Leading: Consumer Staples (XSJ) continues to occupy the Leading quadrant, maintaining the strongest combination of relative strength and momentum.
  • Financials Strengthens in Improving: Financials (XFJ) remains in Improving and has moved strongly upward, making it one of the best-positioned sectors on the RRG.
  • Industrials Remains Improving: Industrials (XNJ) continues to show improving relative momentum and remains positioned above the horizontal midpoint.
  • Real Estate and Consumer Discretionary Remain Improving: Real Estate (XPJ) and Consumer Discretionary (XDJ) remain in Improving despite mixed recent price performance.
  • Communication Services Remains Improving: Communication Services (XTJ) continues to show signs of relative momentum recovery.
  • Resource Sectors Remain Weakening: Energy (XEJ), Resources (XJR) and Materials (XMJ) remain in Weakening, with Resources and Materials positioned deeply within the quadrant.
  • Health Care Remains Weakening: Health Care (XHJ) continues to experience deteriorating relative momentum.
  • Technology Remains Lagging: Information Technology (XIJ) remains the only sector in Lagging, indicating persistent weakness in both relative strength and momentum.

The latest Relative Rotation Graph for 11 September 2026 shows a widening divergence between the stronger and weaker ASX sectors. Consumer Staples (XSJ) remains in Leading, while Financials (XFJ), Industrials (XNJ), Real Estate (XPJ), Communication Services (XTJ) and Consumer Discretionary (XDJ) are positioned in Improving. Energy (XEJ), Utilities (XUJ), Resources (XJR), Materials (XMJ) and Health Care (XHJ) remain in Weakening, while Information Technology (XIJ) is the only sector in Lagging. The daily performance data reinforces the rotation, with Financials gaining 1.08% while Materials and Resources fell 3.63% and 3.24%, respectively.

Momentum Breakdown by Quadrant

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

Leading Quadrant

Consumer Staples (XSJ) remains the only sector positioned in the Leading quadrant, giving it the strongest combination of relative strength and momentum on the latest RRG.

XSJ gained 0.04% on 11 September, making it one of only four sectors to record a positive daily performance. Despite the relatively small gain, its position in Leading indicates that its broader relative momentum remains stronger than most other ASX sectors.

The sector's position near the upper-right area of the RRG continues to reinforce its leadership. Further movement to the right and upward would provide additional confirmation of sustained relative strength.

Improving Quadrant

Financials (XFJ), Real Estate (XPJ), Industrials (XNJ), Communication Services (XTJ) and Consumer Discretionary (XDJ) are positioned in Improving.

Financials is the most notable sector within this quadrant. XFJ gained 1.08% on 11 September, the strongest daily performance among all twelve sectors. Its strong upward trajectory on the RRG indicates that its relative momentum is improving rapidly and that it is moving closer to the Leading quadrant.

Industrials also remains well positioned in Improving. XNJ gained 0.24%, supporting its upward RRG trajectory and suggesting continued improvement in relative momentum.

Real Estate and Consumer Discretionary remain in Improving, although their daily performances were weaker. XPJ declined 0.95%, while XDJ fell 0.70%. Their RRG positions nevertheless indicate that their broader relative momentum remains on a recovery path.

Communication Services was almost unchanged, declining only 0.08%. Its position in Improving suggests that its relative momentum continues to recover despite limited short-term price movement.

Weakening Quadrant

Energy (XEJ), Utilities (XUJ), Resources (XJR), Materials (XMJ) and Health Care (XHJ) remain in Weakening.

The resource-related sectors are particularly important. Materials declined 3.63%, recording the largest loss among the twelve sectors, while Resources fell 3.24%. Both sectors are positioned deeply within Weakening, indicating that their relative momentum remains under significant pressure.

Energy also declined 0.66%, while its RRG position remains in Weakening. This suggests that the sector's relative strength is deteriorating despite its position being closer to the centre of the chart.

Utilities gained 0.24% and was one of the day's stronger performers, but its position in Weakening demonstrates the difference between short-term price performance and the broader relative momentum cycle.

Health Care declined 1.24% and remains positioned deeply in Weakening. Its location indicates continued deterioration in relative momentum and no clear recovery signal at this stage.

Lagging Quadrant

Information Technology (XIJ) remains the only sector positioned in Lagging, reflecting weak relative strength and subdued momentum.

XIJ declined 2.06% on 11 September, recording the second-largest decline among the twelve sectors. The combination of negative daily performance and its position deep within Lagging makes Information Technology one of the clearest areas of weakness in the current sector momentum structure.

The RRG trajectory suggests that the sector would need to move back toward the centre of the chart before a meaningful recovery could be confirmed. A sustained movement into Improving would provide stronger evidence that technology's relative momentum is beginning to recover.

Bottom Line

The 11 September 2026 ASX RRG shows a clear divergence between Financials and the resource-related sectors. Consumer Staples remains the sole sector in Leading, while Financials has strengthened significantly within Improving and recorded the strongest daily gain of 1.08%.

Meanwhile, Materials and Resources remain deeply positioned in Weakening following declines of 3.63% and 3.24%, respectively. Health Care and Utilities also remain in Weakening, while Information Technology continues to occupy Lagging.

Overall, the latest RRG indicates that Leadership remains concentrated. Financials is showing the strongest improvement and could become an important candidate for a transition into Leading, while continued weakness in Materials, Resources and Technology suggests that broad-based sector momentum has not yet been established.