Key Momentum Shifts

  • Utilities Enter Leading: Utilities (XUJ) has moved into the Leading quadrant, marking an important improvement in its relative momentum.
  • Financials Remain Leading: Financials (XFJ) continue to occupy the Leading quadrant, despite declining 0.56%.
  • Industrials and Consumer Staples Remain Leading: Industrials (XNJ) and Consumer Staples (XSJ) remain positioned in Leading.
  • Consumer Discretionary and Real Estate Improve: Consumer Discretionary (XDJ) and Real Estate (XPJ) remain in the Improving quadrant.
  • Three Sectors Remain Weakening: Energy (XEJ), Health Care (XHJ) and Communication Services (XTJ) are positioned in Weakening.
  • Materials, Resources and Technology Lag: Materials (XMJ), Resources (XJR) and Information Technology (XIJ) remain in the Lagging quadrant.
  • Materials and Resources Show Strong Daily Gains: Materials gained 1.57%, while Resources advanced 1.02%, despite both remaining in Lagging.
  • Technology Remains Lagging: Information Technology declined 0.61% and remains substantially within the Lagging quadrant.

The latest Relative Rotation Graph for 23 September 2026 shows continued divergence across ASX sector momentum. Financials, Industrials, Consumer Staples and Utilities occupy the Leading quadrant, while Consumer Discretionary and Real Estate remain in Improving. Energy, Health Care and Communication Services are positioned in Weakening, while Materials, Resources and Information Technology remain in Lagging. The chart highlights a notable transition in Utilities, which has moved across the horizontal axis into Leading.

The RRG also demonstrates that daily performance and broader relative momentum can diverge significantly. Materials and Resources recorded strong daily gains while remaining in Lagging, whereas Financials declined but continued to occupy Leading. 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 23/09/2026). Powered by: amibroker.com.

Leading Quadrant

Financials (XFJ), Industrials (XNJ), Consumer Staples (XSJ) 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 firmly positioned within Leading despite declining 0.56% during the session. This illustrates that the RRG measures broader relative momentum rather than simply the latest daily return. Industrials declined 0.31%, while Consumer Staples gained 0.10%, with both continuing to occupy Leading.

The most notable development is Utilities, which has entered Leading. XUJ gained 2.21% during the session, yet its position near 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) and Real Estate (XPJ) remain in the Improving quadrant.

Consumer Discretionary declined only 0.09%, while Real Estate gained 1.31%. Both sectors remain positioned in the upper-left portion of the chart, indicating improving relative momentum while their relative strength remains below the Leading area.

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

Energy (XEJ), Health Care (XHJ) and Communication Services (XTJ) remain in the Weakening quadrant.

Energy declined 1.70%, Health Care fell 0.62%, and Communication Services dropped 0.96%. Their positions in the lower-right area of the RRG indicate that relative strength remains comparatively firm but momentum is deteriorating.

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), Resources (XJR) and Information Technology (XIJ) remain in Lagging.

Materials delivered the strongest daily performance among all twelve sectors, gaining 1.57%, while Resources advanced 1.02%. However, both remain in the lower-left portion of the RRG, demonstrating that strong short-term price performance has not yet translated into a broader improvement in relative momentum.

Information Technology declined 0.61% and remains substantially within Lagging. Its position indicates that a sustained improvement in relative momentum would be required before a transition toward the centre of the RRG could be confirmed.

The trajectories of Materials and Resources are particularly important because their strong daily gains could provide an early indication of a potential momentum recovery if their RRG paths continue moving upward and toward the centre.

Bottom Line

The 23 September 2026 ASX Relative Rotation Graph shows continued sector rotation and significant divergence in relative momentum. Financials, Industrials, Consumer Staples and Utilities occupy Leading, while Consumer Discretionary and Real Estate remain in Improving. Energy, Health Care and Communication Services are positioned in Weakening, while Materials, Resources and Information Technology continue to occupy Lagging.

The most notable development is Utilities entering the Leading quadrant. Its transition across the horizontal axis represents an improvement in broader relative momentum, although its position close to the centre means further movement will be important.

Materials and Resources also Warrant attention after recording strong daily gains despite remaining in Lagging. Conversely, Information Technology continues to display weaker relative momentum. Overall, the latest RRG highlights a market characterised by continued rotation, with Utilities strengthening into Leading while Materials, Resources and Technology remain in the Lagging quadrant.