Key Momentum Shifts

  • Industrials (XLI) has moved into Leading, with its latest plotted point just to the right of the vertical midpoint and above the horizontal axis.
  • Eight other sectors remain in Leading: Energy (XLE), Consumer Staples (XLP), Utilities (XLU), Health Care (XLV), Materials (XLB), Real Estate (XLRE), Financials (XLF) and Consumer Discretionary (XLY).
  • Energy (XLE) retains the strongest rightward positioning, although its trajectory has fallen sharply from its earlier peak and now sits close to the horizontal midpoint.
  • Several other Leading sectors, including Consumer Staples, Utilities and Consumer Discretionary, also display downward or retreating tails, suggesting that momentum has moderated.
  • Technology (XLK) remains the deepest Lagging sector, positioned well below and to the left of the central reference lines.
  • Communication Services (XLC) is also in Lagging, with negative relative strength and momentum, although it is less deeply positioned than Technology.
  • No sector occupies Improving or Weakening; the current distribution is concentrated in Leading and Lagging.

The Relative Performance Visualization for 2 November 2026 shows nine US sectors in Leading and two in Lagging. Industrials has moved across the vertical midpoint into the upper-right quadrant, joining Energy, Consumer Staples, Utilities, Health Care, Materials, Real Estate, Financials and Consumer Discretionary. Communication Services and Technology remain below and left of the central reference lines. No sector is currently positioned in Improving or Weakening.

The chart points to a broad Leadership group, but the direction of the tails is less uniformly positive than the quadrant count alone suggests. Industrials’ move into Leading is a constructive change, while Energy retains the strongest rightward position despite a substantial retreat from its earlier high. Several other leaders also show signs of easing momentum. Technology remains the most pronounced laggard, with Communication Services also outside the positive relative-momentum group.

US Sector Momentum Quadrants

US Sector Relative Momentum Chart at the closing price of 02/11/2026. Powered by: amibroker.com.

Leading Quadrant

Industrials (XLI), Energy (XLE), Consumer Staples (XLP), Utilities (XLU), Health Care (XLV), Materials (XLB), Real Estate (XLRE), Financials (XLF) and Consumer Discretionary (XLY) occupy the Leading quadrant. Their positions to the right of the vertical midpoint and above the horizontal axis indicate relatively strong relative strength and positive momentum. Industrials’ latest point is only modestly to the right of the axis, while Energy remains the furthest-right sector and therefore has the strongest relative-strength positioning in the chart.

The trajectories within this group are not uniform. Industrials has advanced from the Improving side and crossed into Leading, a notable improvement in its relative position. Energy, by contrast, has retreated markedly from its earlier high; although it remains far to the right, its latest point is close to the horizontal midpoint. Consumer Staples also shows a pronounced downward path from a higher level. Utilities and Consumer Discretionary have similarly retreated, while Health Care, Materials, Real Estate and Financials remain in the upper-right quadrant with varying degrees of softer or sideways movement.

Quadrant membership and trajectory should be assessed separately. Remaining in Leading indicates that relative strength is still established, but a sustained downward path towards the centre would signal a narrowing advantage. A renewed upward turn or continued rightward progress would provide stronger evidence that these sectors are maintaining leadership. Industrials’ ability to remain above both midpoint lines will be important in confirming its transition from early improvement to established leadership.

Lagging Quadrant

Communication Services (XLC) and Technology (XLK) remain in Lagging. Both are left of the vertical axis and below the horizontal midpoint, indicating weak relative strength and negative momentum compared with the sectors in Leading. Their positions remain materially separated from the upper-right leadership group.

Communication Services is closer to the central area than Technology, but its latest point remains deep in negative territory. Its plotted path has moved lower and then started to recover only modestly; a sustained upward and rightward trajectory would be required to signal a rotation towards Improving. Until that develops, its relative-momentum profile remains weak.

Technology is the most pronounced laggard, positioned substantially farther left and lower than Communication Services. Its trajectory extends deep into the lower-left quadrant, reflecting a significant relative-momentum disadvantage. The plotted history shows a steep decline from the upper-left area, with only a limited recovery near the latest point. A meaningful improvement would require sustained upward movement first, followed by progress towards the vertical axis.

Bottom Line

The 2 November 2026 chart shows nine sectors in Leading and Communication Services and Technology in Lagging, with no sectors in Improving or Weakening. Industrials has crossed into Leading, joining the established leadership group, while Energy retains the strongest rightward position despite a sharp loss of momentum from its earlier peak. Several other leaders also display retreating tails, indicating that leadership remains broad but momentum is moderating in parts of the group. Technology continues to be the clearest laggard. The direction of subsequent tails will be important in determining whether Industrials can consolidate its new position and whether the established leaders can stabilise their momentum.