Key Highlights

  • Two Sectors in Leading: Communication Services (XLC) and Technology (XLK) remain in the Leading quadrant.
  • One Sector in Weakening: Energy (XLE) remains positioned in Weakening.
  • Eight Sectors in Lagging: Financials, Industrials, Consumer Discretionary, Real Estate, Consumer Staples, Materials, Health Care and Utilities are in Lagging.
  • Financials Deteriorates: XLF has moved from Weakening into Lagging.
  • Leadership Remains Concentrated: Only XLC and XLK are currently positioned in Leading.
  • Broad Lagging Group: Eight of the 11 sectors are now positioned in Lagging, indicating limited participation outside the leading sectors.

The latest US sector momentum visualization for 15 September 2026 shows two sectors in Leading, one in Weakening and eight in Lagging. The most notable change is the movement of Financials (XLF) from Weakening into Lagging, while Energy (XLE) remains in Weakening. Communication Services and Technology continue to occupy the Leading quadrant, maintaining their comparatively stronger relative momentum.

Momentum Breakdown by Quadrant

US Sector Relative Momentum Chart (at the closing price of 15/09/2026). Powered by: amibroker.com.

Leading: Communication Services and Technology

Communication Services (XLC) and Technology (XLK) remain the two sectors positioned in the Leading quadrant. Their locations above and to the right of the central axes indicate comparatively stronger relative strength and momentum.

The continued Leading classification suggests that both sectors retain stronger relative positioning than the majority of the US sector universe. However, their subsequent direction remains important. A continued move toward the upper-right would reinforce their current momentum, while movement toward the centre of the chart could indicate a gradual deterioration.

The RRG positioning also highlights the distinction between short-term price performance and broader relative momentum. A sector does not need to record a positive daily return to remain in Leading because the RRG reflects relative strength and momentum over a broader measurement period.

Weakening: Energy

Energy (XLE) is the only sector currently positioned in the Weakening quadrant.

Its position indicates that Energy continues to maintain comparatively stronger relative positioning than the sectors in Lagging, although its relative momentum is deteriorating. This places Energy between the Leading and Lagging groups.

The direction of XLE's trajectory will therefore remain important. Movement toward the upper-right would indicate an improvement in relative momentum, while continued movement toward the lower-left could eventually result in a transition into Lagging.

The latest configuration is notable because Financials has moved out of Weakening, leaving Energy as the only sector occupying this quadrant.

Lagging: Eight Sectors

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

The key development is Financials moving from Weakening into Lagging. In the previous configuration, XLF retained comparatively stronger relative positioning while its momentum was deteriorating. Its latest position below the horizontal axis indicates a further deterioration in relative momentum.

The other seven sectors remain in Lagging, showing that their relative momentum has not yet improved sufficiently to move into a stronger quadrant.

The large Lagging group highlights the narrow nature of current sector leadership. It also demonstrates why RRG analysis should not be interpreted solely through daily sector performance. Short-term gains or losses do not necessarily produce an immediate change in quadrant classification.

Financials Moves Into Lagging

The movement of Financials (XLF) from Weakening into Lagging is the most significant change in the latest RRG configuration.

Its transition below the horizontal axis indicates that relative momentum has weakened further. For Financials to return to Weakening, its trajectory would need to move back above the horizontal axis while maintaining sufficient relative strength.

A sustained movement toward the upper-right would provide stronger evidence of improving momentum, while continued movement toward the lower-left would reinforce its Lagging position.

This transition also increases the number of sectors in Lagging, reinforcing the concentration of weaker relative momentum across the sector universe.

Leadership Remains Concentrated

The latest RRG configuration continues to show concentrated leadership. Technology and Communication Services are the only sectors in Leading, while eight sectors are positioned in Lagging.

This structure indicates a significant separation between the leading sectors and the broader group with weaker relative momentum. Energy remains positioned between these two groups in Weakening.

The current configuration also means that changes in the trajectories of XLC and XLK will be important for assessing whether their Leadership persists. Similarly, the direction of XLE and XLF will determine whether the current Weakening and Lagging classifications change.

Strategic Summary

The latest US sector RRG presents a concentrated momentum environment, with Communication Services and Technology in Leading, Energy in Weakening and eight sectors in Lagging. The key development is Financials moving from Weakening into Lagging, leaving Energy as the only sector in Weakening.

Technology and Communication Services continue to hold the strongest relative momentum positions, while Energy requires monitoring for further deterioration. Financials also warrants attention following its transition into Lagging.

The large number of sectors in Lagging indicates that a broad improvement in sector momentum has yet to emerge. Future movement toward the upper-right of the RRG chart would provide evidence of improving relative strength and momentum.

Overall, the key developments to monitor are whether XLC and XLK maintain their Leading positions, whether XLE remains in Weakening, whether XLF can recover from its latest deterioration, and whether the Lagging sectors begin showing sustained improvement in relative momentum.