Key Highlights

  • Technology Remains in Leading: Information Technology (XLK) remains positioned in the Leading quadrant with strong relative momentum.
  • Communication Services Enters Weakening: XLC has moved from Leading into Weakening, indicating deteriorating momentum while remaining above the long-term relative-performance axis.
  • Energy Remains in Weakening: XLE continues to show weakening momentum and remains below its previous relative-strength position.
  • Industrials Moves into Improving: XLI has entered Improving, indicating strengthening momentum while remaining below the long-term relative-performance threshold.
  • Seven Sectors Remain in Lagging: Financials, Consumer Discretionary, Real Estate, Consumer Staples, Materials, Health Care and Utilities remain in Lagging.
  • Leadership Becomes More Concentrated: Technology is now the only sector positioned in Leading.
  • Momentum Rotation Continues: The movement of XLC into Weakening and XLI into Improving highlights changing sector momentum.

The latest US sector momentum visualization for 21 September 2026 shows a more transitional market structure. Technology (XLK) remains in Leading, while Communication Services (XLC) has moved into Weakening. Energy (XLE) also remains in Weakening, while Industrials (XLI) has entered Improving. Seven sectors remain in Lagging.

The latest configuration therefore shows a shift within the previous Leadership structure. XLC's movement out of Leading is particularly important, while XLI's move into Improving provides an early indication of strengthening relative momentum.

Momentum Breakdown by Quadrant

US Sector Relative Momentum Chart (at the closing price of 21/09/2026). 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 significantly higher than most other sectors, reinforcing its current leadership position.

The sector gained 2.77% on 21 September 2026, making it the second-best-performing sector during the session. The combination of strong daily performance and Leading RRG positioning provides a consistent indication of current relative strength.

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

Weakening: Communication Services and Energy

Communication Services (XLC) has now entered the Weakening quadrant after previously being positioned in Leading.

Its current position indicates that momentum has deteriorated even though the sector remains above the long-term relative-performance axis. This means XLC continues to maintain relatively stronger positioning than sectors in Lagging, but its momentum has weakened sufficiently to move it out of Leading.

The daily performance data shows a contrasting picture. XLC gained 3.56%, making it the strongest-performing sector during the session. This demonstrates that RRG positioning reflects relative momentum rather than simply one-day price performance.

Energy (XLE) also remains in Weakening. The sector continues to maintain relatively stronger positioning than the Lagging group, although its momentum has deteriorated.

XLE fell 2.88%, making it the weakest-performing sector. Its combination of negative daily performance and Weakening positioning makes its subsequent trajectory important.

Improving: Industrials

Industrials (XLI) has moved into the Improving quadrant.

Its position indicates that momentum is strengthening, although the sector remains below the long-term relative-performance threshold. The transition into Improving represents movement away from the Lagging group and toward a potentially stronger relative position.

XLI gained 0.14% on 21 September. Although the daily gain was modest, its RRG position suggests that the more important development is the improvement in relative momentum.

A sustained move toward the upper-right would indicate further improvement, while a Reversal toward the lower-left could signal that momentum is weakening again.

Lagging: Seven Sectors

Seven sectors remain positioned in Lagging: Financials (XLF), 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. However, the movement of Industrials into Improving indicates that the group is beginning to experience some internal rotation.

Daily performance was mixed. Consumer Discretionary gained 1.08%, Health Care rose 0.37%, Real Estate gained 0.14% and Financials added 0.07%. In contrast, Materials declined 0.56%, Consumer Staples fell 1.06% and Utilities declined 1.07%.

These differences reinforce the distinction between daily performance and RRG positioning.

Strategic Summary

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

XLK continues to occupy the strongest relative momentum position. XLC's move into Weakening signals a deterioration from its previous Leading classification, while XLI's move into Improving represents a positive change in relative momentum.

The key developments to monitor are whether XLK can maintain its Leading position, whether XLC continues deeper into Weakening or recovers, whether XLE deteriorates further, and whether XLI can progress from Improving toward Leading.