Key Highlights

  • Five Sectors in Leading: Energy (XLE), Health Care (XLV), Technology (XLK), Consumer Discretionary (XLY) and Materials (XLB) remain in Leading.
  • Materials Enters Leading: XLB has moved from Lagging into Leading, signalling a meaningful improvement in relative momentum.
  • Three Sectors Improving: Communication Services (XLC), Consumer Staples (XLP) and Utilities (XLU) are positioned in Improving.
  • Financials, Industrials and Real Estate Lag: XLF, XLI and XLRE remain in Lagging.

The latest US sector momentum visualization for 24 August 2026 shows a more balanced rotation structure. Five sectors are in Leading, three are Improving and three remain in Lagging, while no sectors occupy Weakening.

Materials has made the most notable improvement, moving into Leading, while Communication Services, Consumer Staples and Utilities have entered Improving. This suggests that positive relative momentum is beginning to broaden beyond the established leaders.

Momentum Breakdown by Sector

ASX Sector Relative Momentum Chart (at the closing price of 24/08/2026). Powered by: amibroker.com.

Leading: Energy, Health Care, Technology, Consumer Discretionary and Materials

Energy (XLE), Health Care (XLV), Technology (XLK), Consumer Discretionary (XLY) and Materials (XLB) are positioned in Leading.

Energy remains firmly established as one of the strongest sectors, while Health Care and Technology continue to maintain strong relative momentum. Consumer Discretionary remains in Leading but is closer to the centre of the RRG, making its trajectory important to monitor.

Materials has now entered Leading, representing a significant improvement from its previous Lagging position. The move indicates strengthening relative momentum and adds another sector to the market's Leadership group.

Together, these five sectors represent the current core of US sector momentum leadership.

Improving: Communication Services, Consumer Staples and Utilities

Communication Services (XLC), Consumer Staples (XLP) and Utilities (XLU) are positioned in Improving.

Communication Services continues to move toward stronger relative positioning, while Consumer Staples has also strengthened and is approaching Leading. Utilities has made a notable recovery from its previous Lagging position and remains on an improving trajectory.

Continued movement toward the upper-right would provide confirmation that these sectors are transitioning into stronger leadership positions.

Lagging: Financials, Industrials and Real Estate

Financials (XLF), Industrials (XLI) and Real Estate (XLRE) remain in Lagging, indicating weaker relative momentum.

Financials and Industrials remain below the RRG midlines, while Real Estate is positioned further into Lagging. A sustained movement toward the centre would provide the first indication of a potential momentum recovery.

Strategic Summary

The latest US sector momentum analysis shows five sectors in Leading, three in Improving and three in Lagging, with no sectors in Weakening.

Energy, Health Care and Technology remain among the strongest momentum areas, while Materials has now joined the Leading group. Communication Services, Consumer Staples and Utilities are showing improving momentum, suggesting that market leadership may be broadening.

Meanwhile, Financials, Industrials and Real Estate remain in Lagging. Overall, the RRG presents a gradually improving momentum structure, although continued strength in the Improving sectors will be required to confirm a broader rotation toward market leadership.