Key Momentum Shifts

  • Technology Strengthens: Information Technology (XIJ) remains in Improving and shows the strongest upward trajectory on the latest RRG.
  • Leading Group Remains Broad: Health Care (XHJ), Industrials (XNJ), Communication Services (XTJ) and Financials (XFJ) remain in Leading.
  • Consumer Discretionary Remains Improving: Consumer Discretionary (XDJ) stays in Improving despite its recent change in trajectory.
  • Real Estate Remains Improving: Real Estate (XPJ) continues to occupy the Improving quadrant.
  • 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 in the Lagging quadrant.
  • Strongest Daily Performance: Information Technology gained 4.61%, recording the strongest daily performance among the twelve sectors.
  • Materials and Resources Improve in Price: Materials gained 1.02% and Resources rose 0.81%, although both remain in Lagging on the RRG.

The latest Relative Rotation Graph for 29 September 2026 shows continued divergence across ASX sector momentum. Health Care, Industrials, Communication Services and Financials remain 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 sit in Lagging.

The chart also highlights an important distinction between daily price performance and broader relative momentum. Information Technology recorded the strongest daily gain while remaining in Improving, whereas Materials and Resources delivered positive daily returns but remain in the Lagging quadrant. This indicates that a strong single-session performance does not necessarily mean that a sector has already established stronger relative momentum.

Momentum Breakdown by Quadrant

ASX Sector Relative Momentum Chart at the closing price of 29/09/2026. Powered by: amibroker.com.

Leading Quadrant

Health Care (XHJ), Industrials (XNJ), Communication Services (XTJ) and Financials (XFJ) remain 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 gained 0.22% during the latest session and remains one of the stronger sectors on the RRG. Its position in Leading indicates that the sector continues to maintain favourable relative strength compared with the broader market.

Industrials advanced 0.36%, while Communication Services declined marginally by 0.13%. Financials also slipped 0.13%. These mixed daily performances demonstrate that RRG positioning does not simply rank sectors according to their latest daily returns. Instead, the chart reflects broader relative momentum and relative strength.

The trajectories of the Leading sectors remain important. Continued movement toward the upper-right area would reinforce their existing relative position, while movement back 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.

Information Technology is the most notable sector within this group. XIJ surged 4.61% on 29 September, recording the strongest daily performance across all twelve sectors. The sharp upward trajectory visible on the RRG reinforces the significant improvement in its recent relative momentum.

Consumer Discretionary gained 0.72%, while Real Estate declined 0.21%. Despite their different daily performances, both sectors remain within the Improving quadrant, indicating that their broader relative momentum is stronger than suggested by the latest session alone.

For Information Technology in particular, continued movement toward the Leading quadrant would provide further evidence that the sector is transitioning from improving relative momentum toward stronger relative strength.

Weakening Quadrant

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

Consumer Staples declined only 0.06%, while Utilities fell 0.82% and Energy declined 0.72%. Their positions in Weakening indicate that relative momentum has deteriorated compared with the broader market.

The chart demonstrates why daily performance and RRG positioning should be considered separately. A sector may record only a small daily loss while still occupying Weakening because the RRG measures the direction of relative momentum over a broader period.

Utilities and Energy remain particularly notable because both are positioned below the horizontal midpoint. Continued downward movement would indicate further deterioration in relative momentum, while a Reversal toward the centre would be required before an improvement in their RRG status could be established.

Lagging Quadrant

Materials (XMJ) and Resources (XJR) remain in the Lagging quadrant. Materials gained 1.02%, while Resources advanced 0.81% during the latest session.

Despite these positive daily performances, both sectors remain in the lower-left portion of the RRG, indicating weaker relative momentum and relative strength. Their recent price gains therefore have not yet translated into a clear improvement in their broader relative positioning.

The upward trajectories visible on the chart are nevertheless worth monitoring. Sustained movement toward the centre of the RRG would provide stronger evidence that Materials and Resources are beginning to recover from their current Lagging positions.

Bottom Line

The 29 September 2026 ASX Relative Rotation Graph shows continued divergence across sector momentum. Health Care, Industrials, Communication Services and Financials remain 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 sharp improvement in Information Technology. XIJ gained 4.61% and shows the strongest upward trajectory among the sectors in Improving. Materials and Resources also recorded positive daily performances, but their positions in Lagging indicate that their broader relative momentum remains weaker.

Overall, the latest RRG continues to show dynamic sector rotation. The trajectories of Information Technology and the other Improving sectors, together with the movements of Materials and Resources toward or away from the centre of the chart, remain important indicators for assessing changes in relative sector momentum.