markets PM market analysis — 2026-09-12

Sector leadership is narrowing. Energy and healthcare have extended their relative strength, while technology and industrials, the two groups that drove the earlier advance, are both cooling off together. That convergence marks a shift from a broad rotation into a more selective one.

Relative-rotation analysis points to consumer staples and real estate picking up momentum, though neither has yet reclaimed its longer-term relative-strength baseline. Set against the latest AAII survey, which shows individual investors roughly split with bearish views marginally ahead, the combination argues for caution rather than conviction in either direction. Sector leadership is best read through the business cycle and relative strength, the framework that separates genuine emerging leaders from groups that are simply losing steam.