Key Momentum Shifts

  • Five Sectors Remain in Leading: Health Care (XHJ), Utilities (XUJ), Energy (XEJ), Resources (XJR) and Materials (XMJ) remain in the Leading quadrant.
  • Health Care Maintains Strong Position: XHJ remains positioned furthest into the upper-right area of the RRG, although its trajectory is moving lower.
  • Utilities Remains Firmly in Leading: XUJ continues to show strong relative strength and momentum.
  • Resources and Materials Remain Positive: XJR and XMJ continue to occupy the Leading quadrant.
  • Consumer Staples Remains in Improving: XSJ continues to show strengthening relative momentum.
  • Information Technology Remains in Weakening: XIJ stays in the Weakening quadrant despite recording the strongest daily gain of 2.31%.
  • Five Sectors Remain in Lagging: Consumer Discretionary (XDJ), Communication Services (XTJ), Industrials (XNJ), Financials (XFJ) and Real Estate (XPJ) remain in Lagging.
  • Strong Daily Market Breadth: Ten of the twelve ASX sectors advanced on 28 August, led by Information Technology, Resources and Materials.
  • Momentum Remains Selective: The latest RRG shows five sectors in Leading, one in Improving, one in Weakening and five in Lagging.

The latest Relative Rotation Graph for 28 August 2026 shows a moderately polarised momentum structure across the Australian Equity market. Five sectors remain in Leading, while Consumer Staples continues to occupy Improving and Information Technology remains in Weakening. Five sectors also remain in the Lagging quadrant.

The daily performance data, however, shows a significant improvement in market breadth, with ten of the twelve sectors advancing. Information Technology led the gains with a 2.31% increase, followed by Resources at 1.00% and Materials at 0.98%. This divergence between short-term price performance and RRG positioning is particularly important for assessing whether recent gains can translate into improving relative momentum.

Momentum Breakdown by Quadrant

ASX Sector Relative Momentum Chart (at the closing price of 28/08/2026). Powered by: amibroker.com.

Leading Quadrant

Health Care (XHJ), Utilities (XUJ), Energy (XEJ), Resources (XJR) and Materials (XMJ) remain positioned in the Leading quadrant.

Health Care (XHJ) continues to hold the strongest relative momentum within the group. Its position deep in the upper-right area of the RRG indicates strong relative strength and momentum. However, the latest trajectory has turned lower, suggesting that its momentum should be monitored for signs of further deterioration.

Utilities (XUJ) also remains firmly in Leading and is positioned well into the upper-right area. Its position indicates sustained relative strength and momentum, although its trajectory should be monitored for any continued movement toward the centre.

Energy (XEJ) remains in the Leading quadrant, although its position is closer to the centre than Health Care and Utilities. This suggests that its Leadership is less established.

Resources (XJR) and Materials (XMJ) also remain in Leading. Both sectors continue to sit above the key RRG midlines, supporting their positive relative momentum. Their recent daily gains of 1.00% and 0.98%, respectively, provide additional evidence of strong short-term buying interest.

Improving Quadrant

Consumer Staples (XSJ) remains in the Improving quadrant.

The sector's position indicates that relative performance continues to strengthen, although it has not yet reached the Leading quadrant. A continued movement toward the upper-right would provide stronger confirmation of sustained improvement in Consumer Staples' relative momentum.

XSJ also gained 0.30% during the latest session, providing some confirmation that its improving relative momentum is being accompanied by positive short-term price performance.

Weakening Quadrant

Information Technology (XIJ) remains in the Weakening quadrant.

The sector's position indicates that its previous relative strength is losing momentum. Although XIJ remains relatively close to the Leading area, its trajectory continues to suggest deterioration in relative momentum.

Interestingly, Information Technology recorded the strongest daily performance on 28 August, gaining 2.31%. This suggests that the sector's recent price rebound has not yet translated into a sufficient improvement in its relative momentum profile. Continued upward performance could eventually support a rotation back toward Leading, while renewed weakness would increase the risk of further deterioration.

Lagging Quadrant

Consumer Discretionary (XDJ), Communication Services (XTJ), Industrials (XNJ), Financials (XFJ) and Real Estate (XPJ) remain in the Lagging quadrant.

These five sectors remain below the key RRG midlines, indicating that their relative momentum has not yet recovered sufficiently to enter Improving.

Despite their Lagging classifications, most recorded positive daily performance. Consumer Discretionary gained 0.44%, Communication Services rose 0.25%, Industrials added 0.04% and Financials increased 0.75%. Real Estate was the exception, declining 0.78%.

The positive daily performance in several Lagging sectors could represent an early improvement in short-term price momentum. However, sustained gains would be required for these sectors to rotate toward the centre and eventually into Improving.

Strategic Summary

The latest RRG shows five sectors in Leading, one in Improving, one in Weakening and five in Lagging. Health Care remains the strongest relative momentum sector, while Utilities, Energy, Resources and Materials continue to provide leadership.

The strongest positive development in the latest session was the broad-based improvement in daily sector performance. Ten of the twelve sectors advanced, with Information Technology, Resources and Materials recording the largest gains.

Information Technology remains the key sector to watch. Its 2.31% gain suggests strong short-term buying interest, but its position in Weakening indicates that this strength has not yet been sufficient to reverse its broader relative momentum deterioration.

Overall, the momentum structure remains constructive but selective. Health Care and Utilities continue to provide established leadership, while Consumer Staples remains the key emerging sector. At the same time, Information Technology requires monitoring for a potential Reversal in its RRG trajectory, while the five sectors in Lagging need sustained relative improvement before a broader recovery in ASX sector momentum can be confirmed.