Key Momentum Shifts

  • Healthcare Moves into Leading: Health Care (XHJ) has moved into the Leading quadrant, supported by strong relative momentum and relative strength.
  • Leading Group Expands: Industrials (XNJ), Financials (XFJ), Communication Services (XTJ) and Health Care (XHJ) are now positioned in Leading.
  • Technology Remains Improving: Information Technology (XIJ) continues to occupy Improving despite recording a negative daily performance.
  • Consumer Discretionary and Real Estate Improve: Consumer Discretionary (XDJ) and Real Estate (XPJ) remain positioned in Improving.
  • Three Sectors in Weakening: Consumer Staples (XSJ), Utilities (XUJ) and Energy (XEJ) remain in Weakening.
  • Materials and Resources Lag: Materials (XMJ) and Resources (XJR) remain firmly positioned in the Lagging quadrant.
  • Strong Healthcare Performance: Health Care gained 1.49%, the strongest daily performance among the twelve sectors.
  • Materials Under Pressure: Materials declined 1.34%, recording the weakest daily performance despite the broader RRG position reflecting longer-term relative momentum.

The latest Relative Rotation Graph for 28 September 2026 shows continued divergence across ASX sector momentum. Industrials, Financials, Communication Services and Health Care occupy the Leading quadrant, while Consumer Discretionary, Information Technology and Real Estate remain in Improving. Consumer Staples, Utilities and Energy are positioned in Weakening, while Materials and Resources remain in Lagging.

The chart also demonstrates the distinction between short-term price performance and broader relative momentum. Health Care delivered the strongest daily gain while moving into Leading, whereas Materials recorded the largest decline and remained in Lagging.

Momentum Breakdown by Quadrant

ASX Sector Relative Momentum Chart at the closing price of 28/09/2026. Powered by: amibroker.com.

Leading Quadrant

Industrials (XNJ), Financials (XFJ), Communication Services (XTJ) and Health Care (XHJ) are positioned in the Leading quadrant. Their locations above the horizontal midpoint and to the right of the vertical axis indicate relatively stronger momentum and relative strength.

Health Care recorded the strongest daily performance, gaining 1.49%. The sector's position in Leading is particularly notable because it combines strong short-term performance with favourable relative momentum.

Financials advanced 1.16%, while Communication Services gained 0.32%. Industrials, however, declined marginally by 0.19%. The different daily performances demonstrate that RRG positioning is not simply a ranking of the latest session's returns. Instead, the chart captures broader relative momentum and strength.

The trajectories of the Leading sectors remain important. Continued upward movement could reinforce their leadership, while a sustained movement toward the horizontal midpoint could indicate a gradual deterioration in relative momentum.

Improving Quadrant

Consumer Discretionary (XDJ), Information Technology (XIJ) and Real Estate (XPJ) remain positioned in Improving.

Consumer Discretionary was almost unchanged, declining just 0.02%, while Real Estate gained 0.57%. Their positions in the upper-left area of the chart indicate improving relative momentum while relative strength remains below the Leading quadrant.

Information Technology declined 0.74% during the session. Despite the negative daily performance, XIJ remains in Improving. This highlights the distinction between daily price movements and the broader momentum measured by the RRG.

Continued movement toward the centre and subsequently into the upper-right quadrant would provide stronger evidence of improving relative strength.

Weakening Quadrant

Consumer Staples (XSJ), Utilities (XUJ) and Energy (XEJ) are positioned in the Weakening quadrant.

Consumer Staples gained 0.83%, while Utilities advanced 1.17%. Energy declined 0.22%. Despite the positive daily performances from Consumer Staples and Utilities, their positions in Weakening indicate that broader relative momentum is deteriorating.

This divergence is particularly important for Utilities and Consumer Staples. A sector can record positive daily returns while simultaneously moving through Weakening if its relative momentum is declining compared with the broader market.

Energy remains in Weakening despite the supportive backdrop from energy prices. Its position indicates that Commodity strength has not translated into stronger relative Equity momentum.

Lagging Quadrant

Materials (XMJ) and Resources (XJR) remain in the Lagging quadrant. Materials declined 1.34%, while Resources fell 1.28%, making them the two weakest-performing sectors in the latest session.

Both sectors remain in the lower-left portion of the RRG, indicating weak relative momentum and relative strength. The continued downward positioning suggests that commodity-related sectors have yet to establish a sustained improvement in relative performance.

A sustained movement upward and toward the centre of the chart would be required before a transition into Improving could be confirmed.

Bottom Line

The 28 September 2026 ASX Relative Rotation Graph shows continued sector rotation and significant divergence in relative momentum. Industrials, Financials, Communication Services and Health Care are positioned in Leading, while Consumer Discretionary, Information Technology and Real Estate occupy Improving.

Consumer Staples, Utilities and Energy remain in Weakening, while Materials and Resources continue to occupy Lagging.

The most notable feature of the latest chart is the presence of Health Care in Leading alongside the established group of Industrials, Financials and Communication Services. At the same time, Materials and Resources remain at the weakest end of the momentum spectrum.

The contrast between daily performance and RRG positioning remains significant. Health Care combined the strongest daily gain with a Leading position, while Utilities and Consumer Staples recorded positive daily returns despite remaining in Weakening. Overall, the latest RRG indicates that sector Leadership remains dynamic, with the trajectories of the Leading and Improving groups warranting close attention.