Key Highlights

  • Two Sectors in Leading: Communication Services (XLC) and Technology (XLK) are positioned in the Leading quadrant.
  • No Sectors in Improving: The previous Improving position of Utilities (XLU) has deteriorated into Lagging.
  • Two Sectors in Weakening: Financials (XLF) and Energy (XLE) remain in Weakening.
  • Seven Sectors in Lagging: Utilities, Health Care, Industrials, Real Estate, Consumer Discretionary, Consumer Staples and Materials are positioned in Lagging.
  • Communication Services Leads Daily Performance: XLC gained 2.19% on 14 September, the strongest performance among the 11 sectors.
  • Technology Remains Strong: XLK gained 1.81%? No — based on the supplied daily data, XLK declined 1.81%, despite remaining in Leading.
  • Utilities Loses Momentum: XLU has moved from Improving into Lagging, signalling a deterioration in relative momentum.
  • Leadership Remains Concentrated: Only XLC and XLK are currently in Leading, while seven sectors occupy the Lagging quadrant.

The latest US sector momentum visualization for 14 September 2026 shows two sectors in Leading, no sectors in Improving, two in Weakening and seven in Lagging. The RRG configuration indicates a significant change in sector rotation, with Communication Services and Technology occupying the Leading quadrant, while Financials and Energy remain in Weakening. Utilities has moved into Lagging, joining Health Care, Industrials, Real Estate, Consumer Discretionary, Consumer Staples and Materials. This configuration highlights increasingly concentrated relative Leadership across the US Equity market.

Momentum Breakdown by Quadrant

US Sector Relative Momentum Chart (at the closing price of 14/09/2026). Powered by: amibroker.com.

Leading: Communication Services and Technology

Communication Services (XLC) and Technology (XLK) are the two sectors positioned in the Leading quadrant. Their position above and to the right of the central axes indicates comparatively strong relative strength and momentum.

XLC also recorded the strongest daily performance on 14 September, gaining 2.19%. This combination of strong price performance and Leading RRG positioning provides positive confirmation of its current momentum.

Technology, meanwhile, remains in Leading despite declining 1.81% during the session. This demonstrates that RRG positioning measures broader relative momentum rather than simply one-day price performance. The continued Leading classification suggests that Technology retains strong relative positioning despite its recent short-term weakness.

The ability of both sectors to remain above the horizontal axis will be important. Continued movement toward the upper-right would strengthen evidence of sustained leadership, while a move back toward the centre could signal momentum deterioration.

Improving: No Sectors

There are currently no sectors in the Improving quadrant.

This represents an important change from the previous RRG configuration, when Utilities (XLU) was the only sector in Improving. The latest chart shows that XLU has moved below the horizontal axis and into Lagging.

The absence of sectors in Improving suggests that there are currently no clear candidates showing recovering relative momentum while still remaining below the Leading threshold. This may indicate that the current rotation is becoming more polarised between established leaders and weaker sectors.

Weakening: Financials and Energy

Financials (XLF) and Energy (XLE) remain in the Weakening quadrant. Both sectors retain relatively stronger positioning compared with the Lagging group but are experiencing deteriorating relative momentum.

Financials declined 0.38% on 14 September, while Energy fell 0.94%. Their positioning suggests that their previous relative strength is losing momentum.

The continued movement of XLF and XLE toward the lower-left would increase the probability of both sectors eventually entering Lagging. Conversely, a Reversal toward the upper-right would indicate renewed relative strength.

Lagging: Utilities, Health Care, Industrials, Real Estate, Consumer Discretionary, Consumer Staples and Materials

Seven sectors are now positioned in Lagging: Utilities (XLU), Health Care (XLV), Industrials (XLI), Real Estate (XLRE), Consumer Discretionary (XLY), Consumer Staples (XLP) and Materials (XLB).

Utilities' move into Lagging is one of the most important changes in the latest chart. XLU previously occupied Improving, but its latest position indicates that the recovery in relative momentum has failed to continue.

The remaining sectors also show weak relative momentum. Health Care gained 1.45% and Consumer Staples rose 1.25% on 14 September, yet both remain in Lagging. Consumer Discretionary was almost unchanged at -0.10%, while Real Estate, Materials and Industrials declined 0.69%, 0.90% and 1.42%, respectively.

This again highlights the distinction between daily performance and broader relative momentum. A positive one-day return does not necessarily mean that a sector has entered a stronger RRG phase.

Utilities Loses Its Improving Position

The movement of XLU from Improving into Lagging is a key development in the latest RRG chart. The previous configuration showed Utilities as the only sector attempting to recover its relative momentum.

Its latest position below the horizontal axis indicates that this recovery has reversed. A sustained movement back toward the upper-right would be required before Utilities could regain Improving status.

The transition is particularly relevant because it leaves the Improving quadrant empty and increases the number of sectors in Lagging from five to seven.

Leadership Becomes More Concentrated

The latest RRG configuration points to increasingly concentrated sector leadership. Communication Services and Technology are the only sectors in Leading, while seven sectors are positioned in Lagging.

This represents a much narrower leadership structure than a market in which several sectors participate in the Leading and Improving quadrants. The divergence between daily performance and RRG positioning also remains important, as several sectors recorded gains while continuing to occupy Lagging.

Communication Services stands out because its 2.19% gain was accompanied by Leading momentum. Technology provides a contrasting example, declining 1.81% but remaining in Leading because its broader relative momentum remains comparatively strong.

Strategic Summary

The latest US sector RRG presents a concentrated momentum environment, with Communication Services and Technology in Leading, Financials and Energy in Weakening, and seven sectors in Lagging.

The most significant development is the movement of Utilities from Improving into Lagging. This leaves no sectors in the Improving quadrant and suggests that the current sector rotation has become more polarised.

Communication Services currently provides the strongest combination of daily performance and relative momentum, while Technology remains an important longer-term leader despite its recent decline. Financials and Energy require monitoring for further deterioration, while the large Lagging group needs a sustained move toward the upper-right before a meaningful recovery can be confirmed.

Overall, the key developments to monitor are whether XLC and XLK can maintain their Leading positions, whether XLF and XLE continue moving toward Lagging, and whether any of the seven Lagging sectors can regain positive relative momentum.