** Financials a lagging S&P 500 sector YTD, but2nd-half action shows group displaying strong relative strength;That said, Financial Select Sector SPDR Fund nearingmajor resistance
** Financials up 2.4 pct YTD, 8th best SPX sector;underperforming vs overall index's 4.4 pct gain for year
** However, since post-Brexit lows, financials 2nd best SPXsector with 14.4 pct advance (lagging only tech's 18.4 pctsurge)
** 2nd half strength coming as US 10-Year Treasury Yield vaulting higher from 1.32 pct early Jul all-timelow; pressing 1.90 pct as potential for Fed rate hike builds
** XLF back up to battle its Sept high ($20.01) ahead of itslate 2015 peak ($20.28). Chart: http://tmsnrt.rs/2dT6dJ4
** Major resistance at $20.81/$20.97 (2015 top and 61.8 pctFibo retracement of 2007/2009 bear market)
** Clearing $20.97 will offer potential for much moresignificant rise; XLF can then aim at additional Fibo levels in$24.79/$25.37 area (another 18-21 pct)
** Reversal below $18.94/$18.61, however, should refocus on$17.31 post-Brexit low, support line from 2009 (now $17.00)
** Despite recent XLF strength, spread vs iShares MSCIEurope Financials ETF falling since early Jul peak
** Coming under $1.00 can see spread decline toward -$5 incoming months as Eurozone financials outperform
** Largest XLF holdings by pct TNA end-Aug include:Berkshire Hathaway, JPMorgan Chase and WellsFargo
** HSBC, Allianz, and Banco Santander top EUFN holdings end-Sept