Sector rotation · Week 36, 2026
Sector rotation map, week of Aug 31 – Sep 4, 2026
The 12 sector funds against SPY at the close
At the Friday, Sep 4, 2026 close, 1 of the 12 sectors sat in Leading, and Energy (XLE) had the strongest relative strength against the S&P 500, an RS-Ratio of 101.42, in Weakening.
In the week to Sep 4, 2026, Materials (XLB) moved furthest on the map, 3.10 points, from Leading into Lagging, and 5 sectors changed quadrant in all.
7 sectors were in Lagging at the Sep 4, 2026 close, and Industrials (XLI) had the weakest relative strength, an RS-Ratio of 97.84 with RS-Momentum at 99.17, still fading.
Where the 12 sit
This week's crossings
- XLK TechnologyImproving→Leading
- XLU UtilitiesLagging→Improving
- XLB MaterialsLeading→Lagging
- XLC Communication ServicesLeading→Lagging
- XLY Consumer DiscretionaryImproving→Lagging
The week in numbers
At the Sep 4, 2026 close, 4 of the 12 sectors had an RS-Ratio above 100, relative strength above their own 60-session norm against the S&P 500, down from 5 a week earlier, and 2 had RS-Momentum above 100.
The 3 strongest by RS-Ratio at the Sep 4, 2026 close: Energy (XLE) at 101.42, Health Care (XLV) at 100.83 and Financials (XLF) at 100.53.
The 3 weakest at the Sep 4, 2026 close: Industrials (XLI) at 97.84, Consumer Discretionary (XLY) at 98.10 and Real Estate (XLRE) at 98.32.
In the week to Sep 4, 2026, Technology (XLK) gained the most momentum, RS-Momentum up 1.40 to 101.60, while Materials (XLB) lost the most, down 2.95 to 97.85.
The longest run in one quadrant at the Sep 4, 2026 close belongs to Financials (XLF): Weakening for 5 or more weeks running.
All 12 sectors at the close
| Sector | Quadrant | RS-Ratio | RS-Momentum | Week's move |
|---|---|---|---|---|
| XLEEnergy | Weakening2 wks | 101.42 | 99.09 | 0.52 |
| XLVHealth Care | Weakening2 wks | 100.83 | 98.62 | 1.34 |
| XLFFinancials | Weakening5+ wks | 100.53 | 99.55 | 0.15 |
| XLKTechnology | Leading1 wk | 100.03 | 101.60 | 1.45 |
| XLCCommunication Services | Lagging1 wk | 99.59 | 99.81 | 1.24 |
| XLBMaterials | Lagging1 wk | 99.45 | 97.85 | 3.10 |
| XRTRetail | Lagging2 wks | 98.86 | 99.25 | 0.30 |
| XLPConsumer Staples | Lagging2 wks | 98.66 | 98.92 | 1.04 |
| XLUUtilities | Improving1 wk | 98.66 | 100.44 | 0.86 |
| XLREReal Estate | Lagging2 wks | 98.32 | 99.25 | 0.49 |
| XLYConsumer Discretionary | Lagging1 wk | 98.10 | 97.96 | 2.35 |
| XLIIndustrials | Lagging3 wks | 97.84 | 99.17 | 1.38 |
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Each dot is a sector fund measured against SPY at the week's last close, by the readings the MomoEdge Pulse dashboard uses. The map updates at 8:00 AM ET every Saturday with the week's closes. Educational content, not financial advice.