Sectors · weekly read
Where the flow is this week.
Updated ·
Ranked by combined momentum (RSI(14) +% distance from SMA50). Prices/technicals computed from split-adjusted daily bars through the 2026-08-25 close. Regime read: RISK-ON (VIX 15.13, calm; breadth 59.3% of names above their 200-EMA, healthy but unconfirmed; SPY +7.2% vs 200-EMA).
Which US sectors have the strongest momentum right now?
As of the 2026-08-25 close, Healthcare (XLV) ranks first of 12 US sectors on combined momentum, with RSI 69.3 and +7.87% versus its SMA50. Full ranking:
| Rank | Sector | Ticker | Price | RSI(14) | vs SMA50 | vs SMA20 | Signal |
|---|---|---|---|---|---|---|---|
| 1 | Healthcare | XLV | $175.28 | 69.3 | +7.87% | +4.30% | Above both MAs, momentum positive |
| 2 | Energy | XLE | $62.06 | 59.6 | +7.59% | +2.17% | Above both MAs, momentum positive |
| 3 | Financials | XLF | $58.30 | 62.0 | +3.78% | +1.12% | Above both MAs, momentum positive |
| 4 | Materials | XLB | $53.59 | 61.6 | +3.77% | +2.27% | Above both MAs, momentum positive |
| 5 | Staples | XLP | $86.50 | 55.3 | +2.03% | +1.03% | Neutral-positive — above SMA50, RSI mid-range |
| 6 | Real Estate | XLRE | $45.36 | 55.4 | +1.16% | +0.77% | Neutral-positive — above SMA50, RSI mid-range |
| 7 | S&P 500 | SPY | $765.79 | 54.2 | +1.75% | +0.13% | Neutral-positive — above SMA50, RSI mid-range |
| 8 | Consumer Disc | XLY | $117.94 | 53.3 | +1.49% | +0.41% | Neutral-positive — above SMA50, RSI mid-range |
| 9 | Tech | XLK | $181.74 | 47.5 | -0.62% | -1.00% | Cooling — RSI under 50 or losing a near MA |
| 10 | Semis | SMH | $555.68 | 45.1 | -5.28% | -1.50% | Cooling — RSI under 50 or losing a near MA |
| 11 | Utilities | XLU | $43.30 | 40.4 | -3.26% | -1.27% | Below MAs — out of favor |
| 12 | Industrials | XLI | $178.40 | 38.7 | -1.91% | -2.46% | Below MAs — out of favor |
What stands out in this week's sector flow?
- Leadership: Healthcare (XLV) tops the table — RSI 69.3, +7.87% vs its SMA50. Extended but momentum intact.
- Weakest: Industrials (XLI) is the most oversold — RSI 38.7, -1.91% vs SMA50. Avoid for fresh momentum until it reclaims its MAs.
- Breadth of strength: 8 of 12 sectors sit above their SMA50. Broad participation supports the risk-on read.
- Extension check: No sector at RSI ≥ 72 — no blow-off-top reading; momentum can run.
Which sectors are worth overweighting or avoiding?
Where momentum lives (leadership)
| Sector | Ticker | RSI | vs SMA50 | Read |
|---|---|---|---|---|
| Healthcare | XLV | 69.3 | +7.87% | Leader; RSI < 72 leaves room. |
| Energy | XLE | 59.6 | +7.59% | Leader; RSI < 72 leaves room. |
| Financials | XLF | 62.0 | +3.78% | Leader; RSI < 72 leaves room. |
| Materials | XLB | 61.6 | +3.77% | Leader; RSI < 72 leaves room. |
Lagging / avoid for fresh momentum
- Tech (XLK) — RSI 47.5, -0.62% vs SMA50: below trend — the setup needs a reclaim.
- Semis (SMH) — RSI 45.1, -5.28% vs SMA50: below trend — the setup needs a reclaim.
- Utilities (XLU) — RSI 40.4, -3.26% vs SMA50: below trend — the setup needs a reclaim.
- Industrials (XLI) — RSI 38.7, -1.91% vs SMA50: below trend — the setup needs a reclaim.
Is money rotating between sectors right now?
Regime: RISK-ON. Leadership sits in XLV, XLE, XLF; the laggards are SMH, XLU, XLI. Defensives at the bottom while growth leads is what a risk-on rotation looks like.
Monitor:
- VIX > 20 = calm regime breaking, first risk-on crack (currently 15.13)
- XLV RSI > 72 / XLE RSI > 72 / XLF RSI > 72 = leaders extended, tighten stops (currently 69.3, 59.6, 62.0)
- Breadth < 50% above 200-EMA = participation deteriorating (currently 59.3%)
Deterministic regen from a US exchange daily bars + macro-regime.json, refreshed every trading day — latest 2026-08-25 · prices through 2026-08-25 close. Research only — no positions, sizes, entries, or P&L.