Key Momentum Shifts

  • Utilities Enter Leading: Utilities (XUJ) has moved into the Leading quadrant, marking an improvement in its relative momentum.
  • Technology Enters Improving: Information Technology (XIJ) has moved from Lagging into Improving, indicating an improvement in its momentum trajectory.
  • Leading Group Expands: Industrials (XNJ), Communication Services (XTJ), Financials (XFJ) and Utilities (XUJ) occupy the Leading quadrant.
  • Consumer Discretionary and Real Estate Improve: Consumer Discretionary (XDJ) and Real Estate (XPJ) remain positioned in Improving.
  • Three Sectors Remain Weakening: Consumer Staples (XSJ), Energy (XEJ) and Health Care (XHJ) are positioned in Weakening.
  • Materials and Resources Lag: Materials (XMJ) and Resources (XJR) remain in the Lagging quadrant despite recent market activity.
  • Energy Leads Daily Performance: Energy gained 1.17%, recording the strongest daily performance among the twelve sectors.
  • Technology Recovers: Information Technology gained 0.25% and has moved into Improving.

The latest Relative Rotation Graph for 24 September 2026 shows continued divergence across ASX sector momentum. Industrials, Communication Services, Financials and Utilities occupy the Leading quadrant, while Consumer Discretionary, Real Estate and Information Technology are positioned in Improving. Consumer Staples, Energy and Health Care are in Weakening, while Materials and Resources remain in Lagging. The chart highlights two notable developments: Utilities has moved into Leading, while Information Technology has entered Improving.

The RRG also demonstrates that daily performance and broader relative momentum can diverge significantly. Energy delivered the strongest daily gain while remaining in Weakening, whereas Materials and Resources declined sharply while continuing to occupy Lagging. This distinction remains important when interpreting the current sector rotation structure.

Momentum Breakdown by Quadrant

ASX Sector Relative Momentum Chart (at the closing price of 24/09/2026). Powered by: amibroker.com.

Leading Quadrant

Industrials (XNJ), Communication Services (XTJ), Financials (XFJ) and Utilities (XUJ) 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.

Financials remains in Leading despite declining 0.83% during the session. Industrials also remained in Leading after falling 0.20%, demonstrating that the RRG measures broader relative momentum rather than simply the latest daily return. Communication Services declined 1.08% but remained in the Leading area.

The most notable development is Utilities, which has entered Leading. XUJ gained 0.29% during the session, and its position close to the horizontal axis indicates that the transition into Leading is relatively recent. Continued movement further into the upper-right area would provide additional evidence of strengthening relative momentum.

Improving Quadrant

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

Consumer Discretionary gained 0.09%, while Real Estate declined 1.95%. Despite the contrasting daily performances, both remain in the upper-left portion of the chart, indicating improving relative momentum while relative strength remains below the Leading area.

Information Technology represents the most important change in this quadrant. XIJ gained 0.25% and has moved from Lagging into Improving. The move suggests that its relative momentum has strengthened sufficiently to cross into the improving phase.

Their subsequent trajectories remain important. Continued movement upward and toward the right would provide stronger evidence of improving relative strength and could eventually support a transition into Leading.

Weakening Quadrant

Consumer Staples (XSJ), Energy (XEJ) and Health Care (XHJ) are positioned in the Weakening quadrant.

Consumer Staples gained 0.35%, Energy advanced 1.17%, and Health Care increased 0.25%. Their positions in the lower-right area of the RRG indicate that relative strength remains comparatively firm but momentum is deteriorating.

Energy presents an important example of the difference between daily performance and RRG positioning. The sector recorded the strongest daily gain among all twelve sectors but remains in Weakening on the broader momentum measure.

Energy is positioned relatively close to the horizontal axis. A move upward toward Leading would indicate improving momentum, while further movement downward would reinforce its transition through Weakening.

Lagging Quadrant

Materials (XMJ) and Resources (XJR) remain in Lagging. Materials declined 1.46%, while Resources fell 1.14% during the session.

The weakness across these sectors demonstrates that strong or weak daily price movements do not necessarily result in an immediate change in RRG classification. Both sectors remain in the lower-left portion of the RRG, demonstrating that their broader relative momentum remains weak.

A sustained movement upward and toward the centre of the chart would be required before a potential transition into Improving could be confirmed. Their trajectories therefore remain important for identifying whether the current Lagging phase is beginning to reverse.

Bottom Line

The 24 September 2026 ASX Relative Rotation Graph shows continued sector rotation and significant divergence in relative momentum. Industrials, Communication Services, Financials and Utilities occupy Leading, while Consumer Discretionary, Real Estate and Information Technology are positioned in Improving. Consumer Staples, Energy and Health Care are in Weakening, while Materials and Resources remain in Lagging.

The most notable developments are Utilities entering Leading and Information Technology moving into Improving. These transitions indicate improving relative momentum, although both sectors remain relatively close to the quadrant boundaries.

Energy also warrants attention after recording the strongest daily gain of 1.17% despite remaining in Weakening. Conversely, Materials and Resources remained in Lagging following substantial daily declines. Overall, the latest RRG highlights a market characterised by continued rotation, with Utilities strengthening into Leading and Technology improving, while Materials and Resources continue to display weaker relative momentum.