** Financial Select Sector SPDR Fund has so farfailed to decisively exit its year-long trading range; stillessentially confined in a triangular pattern
** Financials have seen sharp 9 pct rally frompost-Brexit low, but still only S&P 500 sector withnegative YTD return, off 2.1 pct
** In wake of late Jun low, XLF rallied to challenge upperboundary of pattern, as well as late May high ($23.93). Chart: http://tmsnrt.rs/2b0nSOZ
** However, ETF peaked with major bank earnings, failed toexceed $23.93; pressure coming in again with 40-WMA (now$22.90), and $21.32 Brexit low at risk
** Support line from 2009 low (now $20.45) seen as key tomaintaining bullish prospects given its resilience over the pastyear
** Thrust above $23.93 should trigger run to $24.97, thensummer 2015 peak ($25.62) and major Fibo barrier ($25.82)
** Even with further weakness, US financials still look tooutperform their European counterparts
** XLF - iShares MSCI Europe Financials ETF spreadnow $7.57, biased to widen to $9.50 area
** Largest XLF holdings by pct TNA end-Jun include:Berkshire Hathaway, JP Morgan Chase and WellsFargo
** HSBC Holdings, Allianz, and BancoSantander EUFN largest exposures