Key Highlights

  • Two Sectors in Leading: Communication Services (XLC) and Technology (XLK) remain positioned in the Leading quadrant.
  • One Sector in Weakening: Energy (XLE) remains the only sector in Weakening.
  • Eight Sectors in Lagging: Financials, Industrials, Consumer Discretionary, Real Estate, Consumer Staples, Materials, Health Care and Utilities remain in Lagging.
  • Leadership Remains Concentrated: Only XLC and XLK occupy the Leading quadrant.
  • Energy Requires Monitoring: XLE remains above the horizontal axis but continues to show weakening relative momentum.
  • Broad Lagging Group: Eight of the 11 US sectors remain in Lagging.
  • No Improving Sectors: No sector is currently positioned in the Improving quadrant.

The latest US sector momentum visualization for 17 September 2026 shows a concentrated momentum structure, with Communication Services (XLC) and Technology (XLK) positioned in Leading, Energy (XLE) in Weakening and eight sectors in Lagging. The chart continues to show a significant separation between the two leading sectors and the broader market, with most sectors positioned below the central horizontal axis.

Momentum Breakdown by Quadrant

US Sector Relative Momentum Chart (at the closing price of 17/09/2026). Powered by: amibroker.com.

Leading: Communication Services and Technology

Communication Services (XLC) and Information 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 than most other sectors.

The continued Leading classification indicates that both sectors retain relatively strong momentum. Their trajectories remain important because movement farther toward the upper-right would indicate continued improvement, while movement toward the centre could signal a gradual loss of momentum.

The daily performance data also showed contrasting strength within the Leading group. Technology gained 2.25%, making it the strongest-performing sector during the session, while Communication Services declined 0.58%. This illustrates that RRG positioning reflects relative momentum rather than simply one-day price performance.

The distinction between daily performance and relative momentum remains important. A sector can experience a short-term decline while remaining in Leading if its broader relative momentum remains stronger than that of other sectors.

Weakening: Energy

Energy (XLE) is the only sector positioned in the Weakening quadrant. Its location indicates that Energy continues to maintain relatively stronger positioning than the sectors in Lagging, although its momentum has deteriorated.

Energy's position between the Leading and Lagging groups makes its subsequent trajectory particularly important. A move toward the upper-right would indicate improving relative momentum, while continued movement toward the lower-left would increase the possibility of a transition into Lagging.

The chart therefore identifies Energy as the key sector to monitor outside the two Leading sectors.

Lagging: Eight Sectors

Eight sectors are 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 large Lagging group demonstrates that weaker relative momentum remains widespread across the US sector universe. None of these sectors has moved into Improving, indicating that the chart does not yet show sufficiently sustained relative momentum improvement to change their quadrant classifications.

Financials remain notable because XLF is positioned toward the central area of the Lagging quadrant. The other seven sectors are also below the horizontal axis, although their individual trajectories differ.

A sustained movement toward the upper-right would be required for these sectors to demonstrate a meaningful improvement in relative momentum.

Leadership Remains Concentrated

The latest RRG configuration continues to show a narrow Leadership structure. Technology and Communication Services are the only sectors in Leading, while eight sectors remain in Lagging and Energy occupies Weakening.

This concentration indicates that stronger relative momentum has not yet spread broadly across the US sector universe. The absence of sectors in Improving is particularly notable because it means no Lagging sector has yet entered the transition phase toward Leading.

The trajectories of XLC and XLK will therefore remain important for assessing whether current leadership persists. At the same time, Energy's direction will indicate whether XLE can recover momentum or deteriorate further toward Lagging.

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.

XLC and XLK continue to occupy the strongest relative momentum positions, while XLE remains the key sector in transition. Financials, Industrials, Consumer Discretionary, Real Estate, Consumer Staples, Materials, Health Care and Utilities remain in Lagging, with no sector currently positioned in Improving.

Overall, the chart indicates that broad sector momentum improvement has yet to emerge. The key developments to monitor are whether XLC and XLK maintain their Leading positions, whether XLE regains momentum, and whether the large Lagging group begins moving toward Improving.