Key Highlights

  • Technology remains in Leading: Information Technology (XLK) continues to hold the Leading position with the strongest relative momentum.
  • Industrials remains in Improving: XLI is positioned in Improving, indicating strengthening relative momentum.
  • Communication Services remains in Weakening: XLC continues to show deteriorating momentum after moving out of Leading.
  • Energy remains in Weakening: XLE remains below the long-term relative-performance axis and continues to display weakening momentum.
  • Seven sectors remain in Lagging: Consumer Discretionary, Real Estate, Utilities, Financials, Consumer Staples, Health Care and Materials remain in the Lagging quadrant.
  • Leadership remains concentrated: Technology is the only sector positioned in Leading.
  • Momentum rotation continues: The current configuration highlights a divergence between Technology leadership, improving Industrials and weakening Communication Services and Energy.

The latest US sector momentum visualization for 22 September 2026 shows a transitional market structure. Technology (XLK) remains in Leading, while Industrials (XLI) is positioned in Improving. Communication Services (XLC) and Energy (XLE) remain in Weakening, while seven sectors continue to occupy the Lagging quadrant. This broadly preserves the rotational structure observed in the previous session.

The chart on 22 September shows XLK positioned clearly in the upper-right Leading quadrant, while XLI is located in the upper-left Improving quadrant. XLC and XLE remain on the right side of the chart but below the horizontal axis, placing them in Weakening. The remaining sectors are concentrated in the lower-left Lagging quadrant.

Momentum Breakdown by Quadrant

US Sector Relative Momentum Chart at the closing price of 22/09/2026. Powered by: amibroker.com

Leading: Technology

Information Technology (XLK) remains the only sector positioned in the Leading quadrant.

Its position above the horizontal axis and to the right of the vertical axis indicates comparatively strong relative strength and momentum. XLK is also positioned substantially higher than the other sectors on the chart, reinforcing its current Leadership position.

The sector gained 0.73% on 22 September 2026. The combination of positive daily performance and Leading RRG positioning indicates that Technology continues to maintain a relatively strong position within the US sector universe.

Continued movement toward the upper-right would indicate further strengthening, while movement back toward the centre could signal a gradual loss of relative momentum.

Weakening: Communication Services and Energy

Communication Services (XLC) remains in the Weakening quadrant after previously moving out of Leading.

Its current position indicates that relative momentum has deteriorated even though the sector remains to the right of the long-term relative-performance axis. XLC declined 1.06% during the session, adding to the evidence of short-term weakness.

Energy (XLE) also remains in Weakening. Its position shows that the sector continues to maintain relatively stronger relative positioning than the Lagging group, but its momentum remains below the horizontal axis.

XLE declined 1.09% on 22 September, making it one of the weakest-performing sectors during the session. The combination of negative daily performance and Weakening positioning keeps its subsequent trajectory important.

Improving: Industrials

Industrials (XLI) remains positioned in the Improving quadrant.

Its location above the horizontal axis but to the left of the vertical axis indicates strengthening momentum while the sector remains below the long-term relative-performance threshold. This positioning represents a transition away from the weaker Lagging area.

XLI gained 0.17% on 22 September. Although the daily increase was modest, the RRG position indicates that the more important development is the improvement in relative momentum.

A sustained movement toward the upper-right would indicate further improvement, while a Reversal toward the lower-left could signal renewed momentum deterioration.

Lagging: Seven Sectors

Seven sectors remain positioned in Lagging: Consumer Discretionary (XLY), Real Estate (XLRE), Utilities (XLU), Financials (XLF), Consumer Staples (XLP), Health Care (XLV) and Materials (XLB).

The large Lagging group indicates that weaker relative momentum remains widespread across the US sector universe. However, the presence of Industrials in Improving provides evidence of internal rotation within the broader sector structure.

Daily performance within the Lagging group was mixed. Materials gained 1.65%, Consumer Staples rose 0.99%, Health Care advanced 0.52% and Consumer Discretionary added 0.09%. In contrast, Real Estate declined 0.21%, Utilities fell 0.32% and Financials dropped 1.97%.

These differences demonstrate the distinction between one-day price performance and relative momentum positioning. A sector can record a positive daily return while remaining in Lagging if its relative momentum remains weaker than the benchmark.

Strategic Summary

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

XLK continues to occupy the strongest relative momentum position. XLI's position in Improving represents a strengthening phase, while XLC and XLE remain in Weakening after losing momentum from stronger relative positions.

The key developments to monitor are whether XLK can maintain its Leading position, whether XLC and XLE continue to weaken or begin to recover, whether XLI can progress toward Leading, and whether any of the seven Lagging sectors begin moving toward Improving.