Sector rotation · Week 42, 2026
Sector rotation map, week of Oct 12–16, 2026
The 12 sector funds against SPY at the close
At the Friday, Oct 16, 2026 close, 4 of the 12 sectors sat in Leading, and Energy (XLE) had the strongest relative strength against the S&P 500, an RS-Ratio of 102.38.
In the week to Oct 16, 2026, Health Care (XLV) moved furthest on the map, 4.36 points, from Lagging into Leading, and 5 sectors changed quadrant in all.
One sector was in Lagging at the Oct 16, 2026 close, and Industrials (XLI) had the weakest relative strength, an RS-Ratio of 99.00 with RS-Momentum at 100.71, turning up.
Where the 12 sit
This week's crossings
- XLP Consumer StaplesImproving→Leading
- XLV Health CareLagging→Leading
- XRT RetailImproving→Leading
- XLC Communication ServicesLagging→Improving
- XLK TechnologyWeakening→Lagging
The week in numbers
At the Oct 16, 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, up from 2 a week earlier, and 11 had RS-Momentum above 100.
The 3 strongest by RS-Ratio at the Oct 16, 2026 close: Energy (XLE) at 102.38, Health Care (XLV) at 102.34 and Consumer Staples (XLP) at 101.48.
The 3 weakest at the Oct 16, 2026 close: Industrials (XLI) at 99.00, Technology (XLK) at 99.34 and Real Estate (XLRE) at 99.38.
In the week to Oct 16, 2026, Health Care (XLV) gained the most momentum, RS-Momentum up 3.59 to 103.29, while Technology (XLK) lost the most, down 1.47 to 97.35.
The longest run in one quadrant at the Oct 16, 2026 close belongs to Industrials (XLI): Improving for 5 or more weeks running.
All 12 sectors at the close
| Sector | Quadrant | RS-Ratio | RS-Momentum | Week's move |
|---|---|---|---|---|
| XLEEnergy | Leading2 wks | 102.38 | 101.58 | 1.97 |
| XLVHealth Care | Leading1 wk | 102.34 | 103.29 | 4.36 |
| XLPConsumer Staples | Leading1 wk | 101.48 | 102.51 | 2.98 |
| XRTRetail | Leading1 wk | 100.25 | 101.93 | 1.60 |
| XLUUtilities | Improving3 wks | 99.93 | 101.27 | 0.88 |
| XLBMaterials | Improving3 wks | 99.89 | 101.67 | 2.01 |
| XLYConsumer Discretionary | Improving3 wks | 99.63 | 101.46 | 0.70 |
| XLFFinancials | Improving2 wks | 99.58 | 102.18 | 1.38 |
| XLCCommunication Services | Improving1 wk | 99.44 | 100.76 | 2.83 |
| XLREReal Estate | Improving3 wks | 99.38 | 101.21 | 0.97 |
| XLKTechnology | Lagging1 wk | 99.34 | 97.35 | 2.53 |
| XLIIndustrials | Improving5+ wks | 99.00 | 100.71 | 0.50 |
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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.