Key Highlights

  • Three Sectors in Leading: Energy (XLE), Health Care (XLV) and Materials (XLB) remain in Leading.
  • Financials Enters Improving: Financials (XLF) has moved into Improving, signalling strengthening relative momentum.
  • Five Sectors in Improving: Utilities (XLU), Real Estate (XLRE), Consumer Staples (XLP), Communication Services (XLC) and Financials are in Improving.
  • Consumer Discretionary Enters Weakening: Consumer Discretionary (XLY) has moved into Weakening.
  • Technology Remains Weakening: Technology (XLK) remains in Weakening despite recording the strongest daily gain of 0.94%.
  • Industrials Remains Lagging: Industrials (XLI) continues to show weaker relative momentum.

The latest US sector momentum visualization for 25 August 2026 shows three sectors in Leading, five in Improving, two in Weakening and one in Lagging. The chart indicates an active rotation environment, with momentum strengthening across several sectors while some previous leaders are losing relative strength.

Momentum Breakdown by Sector

ASX Sector Relative Momentum Chart (at the closing price of 25/08/2026). Powered by: amibroker.com.

Leading: Energy, Health Care and Materials

Energy (XLE), Health Care (XLV) and Materials (XLB) remain in Leading.

Energy continues to show strong relative momentum and remains one of the market's strongest sectors. Health Care also maintains a solid Leading position, while Materials has sustained its recent improvement after moving from Lagging into Leading.

Together, these three sectors form the current core of US sector momentum leadership.

Improving: Financials, Utilities, Real Estate, Consumer Staples and Communication Services

Financials (XLF), Utilities (XLU), Real Estate (XLRE), Consumer Staples (XLP) and Communication Services (XLC) are positioned in Improving.

Financials has made the most notable change, moving into Improving from Lagging. This indicates strengthening relative momentum and raises the possibility of a broader recovery in financial stocks.

Utilities, Real Estate, Consumer Staples and Communication Services also continue to show improving relative positioning. Further movement toward the upper-right would strengthen the case for these sectors to transition into Leading.

Weakening: Technology and Consumer Discretionary

Technology (XLK) and Consumer Discretionary (XLY) are positioned in Weakening.

Technology remains in Weakening despite gaining 0.94% in the latest session. This divergence shows that strong daily performance does not necessarily translate into improving relative momentum.

Consumer Discretionary has also entered Weakening after previously being in Leading, signalling a deterioration in its relative position. Further movement toward Lagging would confirm a more sustained loss of momentum.

Lagging: Industrials

Industrials (XLI) remains in Lagging, indicating weaker relative momentum. A sustained move toward the centre of the RRG would provide the first indication of a potential recovery.

Strategic Summary

The latest US sector momentum analysis shows three sectors in Leading, five in Improving, two in Weakening and one in Lagging. Energy, Health Care and Materials remain the core Leadership group, while Financials has made a positive transition into Improving.

Meanwhile, Consumer Discretionary has entered Weakening and Technology remains in Weakening despite its strong daily gain. Overall, the RRG indicates an active sector rotation environment, with continued strength in the Improving sectors needed to confirm a broader shift toward market leadership.