Which Market Sectors Are Leading Right Now?

Live sector rotation heatmap showing 1-week, 1-month, and 3-month performance across all 11 S&P 500 sectors.

What Is Sector Rotation?

Sector rotation is an investment strategy based on the observation that different sectors of the economy perform better at different stages of the business cycle. By identifying which sectors have the strongest momentum, traders can position themselves in the areas most likely to continue outperforming.

During economic expansions, cyclical sectors like Technology, Industrials, and Consumer Discretionary tend to lead. During slowdowns, defensive sectors like Utilities, Health Care, and Consumer Staples typically outperform.

How to Read This Map

1

Check the Labels

HOT sectors (green) have the strongest momentum. COLD sectors (red) have the weakest. Focus on HOT sectors for long positions.

2

Read the Bars

Each sector shows 1-week, 1-month, and 3-month performance. Green bars = gains, red bars = losses. Longer bars = bigger moves.

3

Spot Trends

A sector that's HOT across all timeframes is in a strong trend. A sector gaining in 1W but flat in 3M may be starting a new trend.

Frequently Asked Questions

Sector rotation is a strategy where investors shift money between market sectors based on economic cycles. During expansion, cyclical sectors like Technology and Consumer Discretionary tend to lead. During contraction, defensive sectors like Utilities and Consumer Staples outperform.
The momentum score is a weighted average of performance over three timeframes: 3-month (50% weight), 1-month (30% weight), and 1-week (20% weight). This gives more importance to the longer trend while still capturing recent moves.
Sectors ranked 1-3 by momentum score are labeled HOT (strongest performers). Sectors ranked 9-11 are COLD (weakest performers). The rest are NEUTRAL.
Data is refreshed hourly from live market prices. Sector ETFs (XLK, XLV, XLF, etc.) are used as proxies for each sector's performance.
We track all 11 S&P 500 sector ETFs: XLK (Technology), XLV (Health Care), XLF (Financials), XLE (Energy), XLI (Industrials), XLY (Consumer Discretionary), XLP (Consumer Staples), XLU (Utilities), XLRE (Real Estate), XLC (Communication Services), and XLB (Materials).

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