Key Momentum Shifts

  • Technology Moves into Leading: Information Technology (XIJ) has moved into the Leading quadrant, showing a significant improvement in relative strength and momentum.
  • Consumer Staples Remains Leading: Consumer Staples (XSJ) continues to hold a strong position in the Leading quadrant.
  • Financials and Industrials Continue Improving: Financials (XFJ) and Industrials (XNJ) remain in Improving, indicating recovering relative momentum.
  • Real Estate Remains Improving: Real Estate (XPJ) is positioned in Improving, suggesting its relative momentum is strengthening.
  • Resources and Materials Remain Weakening: Resources (XJR) and Materials (XMJ) remain in Weakening despite strong daily gains.
  • Energy and Utilities Remain Weakening: Energy (XEJ) and Utilities (XUJ) continue to show deteriorating momentum despite recent price strength.
  • Health Care Remains Weakening: Health Care (XHJ) is positioned deep in Weakening, indicating continued deterioration in relative momentum.
  • Consumer Discretionary and Communication Services Remain Lagging: Consumer Discretionary (XDJ) and Communication Services (XTJ) continue to occupy the Lagging quadrant.

The latest Relative Rotation Graph for 9 September 2026 shows a notable shift in ASX sector momentum. Information Technology (XIJ) has moved strongly into the Leading quadrant, joining Consumer Staples (XSJ). Financials (XFJ), Industrials (XNJ) and Real Estate (XPJ) remain in Improving, while Energy (XEJ), Utilities (XUJ), Resources (XJR), Materials (XMJ) and Health Care (XHJ) remain in Weakening. Consumer Discretionary (XDJ) and Communication Services (XTJ) are positioned in Lagging. This maintains the same four-quadrant framework used in the previous ASX RRG analysis.

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

Momentum Breakdown by Quadrant

Leading Quadrant

Information Technology (XIJ) and Consumer Staples (XSJ) are positioned in the Leading quadrant, giving them the strongest combination of relative strength and momentum on the latest RRG.

The most significant development is the movement of Information Technology into Leading. XIJ is positioned well into the upper-right portion of the chart, with its recent trajectory showing a substantial recovery from its previous weaker position. This suggests that technology has experienced a strong improvement in both relative strength and momentum.

This shift is particularly notable because Information Technology declined 0.71% on 9 September. The RRG therefore demonstrates that short-term daily performance does not necessarily correspond with the sector's broader relative momentum position.

Consumer Staples also remains in Leading, although its position is less extended than Information Technology. Its continued presence in the upper-right quadrant indicates that the sector retains positive relative strength and momentum.

Improving Quadrant

Financials (XFJ), Industrials (XNJ) and Real Estate (XPJ) remain in Improving.

Financials is positioned furthest into the upper portion of the Improving quadrant, indicating a strong improvement in relative momentum. Although Financials declined 1.02% during the session, its RRG trajectory continues to point higher.

Industrials (XNJ) is also positioned in Improving, although closer to the centre of the chart. Its relatively stable position suggests that momentum is recovering but has not yet developed into clear leadership.

Real Estate (XPJ) remains in Improving and is positioned close to the horizontal midpoint. This indicates that the sector is recovering from a weaker relative position, although further movement toward the upper-right would be required to confirm stronger momentum.

A sustained move by these sectors toward the upper-right would strengthen the possibility of a transition into Leading.

Weakening Quadrant

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

This group is particularly important because Energy, Resources and Materials were among the strongest-performing sectors on 9 September. Energy gained 1.73%, Resources advanced 1.65%, Materials rose 1.51%, while Utilities increased 1.01%. Despite these strong daily performances, their positions on the RRG indicate that their broader relative momentum is deteriorating.

Energy is positioned near the centre of the Weakening quadrant, suggesting that its deterioration is less pronounced than that of some other sectors. Utilities is further into Weakening, while Resources and Materials are positioned lower on the chart.

Health Care (XHJ) remains the most deeply positioned sector within Weakening. Its location indicates significant deterioration in relative momentum despite the sector's relatively strong position earlier in the rotation cycle.

The concentration of five sectors in Weakening suggests that the recent strength in commodity-related sectors has not yet translated into improving medium-term relative momentum.

Lagging Quadrant

Consumer Discretionary (XDJ) and Communication Services (XTJ) remain in Lagging, reflecting weaker relative strength and subdued momentum.

Consumer Discretionary is positioned in the lower-left portion of the chart, indicating continued weakness in both relative strength and momentum. The sector declined 0.71% on 9 September, adding to its weak momentum profile.

Communication Services is also positioned in Lagging and remains below the horizontal midpoint. Its location suggests that the sector has yet to establish a meaningful recovery in relative momentum.

Both sectors would need to move back toward the centre of the RRG before an improvement in momentum could be confirmed.

Bottom Line

The 9 September 2026 ASX RRG presents a changing sector momentum structure, with the most significant development being Information Technology's move into the Leading quadrant. Consumer Staples also remains in Leading, providing two sectors with positive relative strength and momentum.

Financials, Industrials and Real Estate remain in Improving and represent potential sources of future Leadership if their trajectories continue toward the upper-right.

Meanwhile, Energy, Resources, Materials, Utilities and Health Care remain in Weakening. The positioning of Energy, Resources and Materials is particularly noteworthy because these sectors recorded some of the strongest daily gains on 9 September, yet their RRG positions continue to indicate deteriorating relative momentum.

Consumer Discretionary and Communication Services remain in Lagging, leaving the market with a relatively concentrated leadership structure. Overall, the latest RRG suggests that technology has emerged as the key momentum improver, while the recent strength in resources and energy has yet to translate into renewed relative momentum.