BUZZ-U.S. Financials ETF: Scaling the heights

** Financials a lagging S&P 500 sector YTD, but 2nd-half action shows group displaying strong relative strength; That said, Financial Select Sector SPDR Fund nearing major 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 SPX sector with 14.4 pct advance (lagging only tech's 18.4 pct surge)

** 2nd half strength coming as US 10-Year Treasury Yield vaulting higher from 1.32 pct early Jul all-time low; pressing 1.90 pct as potential for Fed rate hike builds

** XLF back up to battle its Sept high ($20.01) ahead of its late 2015 peak ($20.28). Chart: http://tmsnrt.rs/2dT6dJ4

** Major resistance at $20.81/$20.97 (2015 top and 61.8 pct Fibo retracement of 2007/2009 bear market)

** Clearing $20.97 will offer potential for much more significant 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 MSCI Europe Financials ETF falling since early Jul peak

** Coming under $1.00 can see spread decline toward -$5 in coming months as Eurozone financials outperform

** Largest XLF holdings by pct TNA end-Aug include: Berkshire Hathaway (Sao Paolo: BERK34.SA - news) , JPMorgan Chase (Swiss: JPM.SW - news) and Wells Fargo

** HSBC, Allianz (Hanover: ALVN.HA - news) , and Banco Santander (Amsterdam: 817651.AS - news) top EUFN holdings end-Sept