FINANCIALS HAVE A STRONG WEEK… Financials went from the year’s weakest sector to the strongest gainer this past week. Chart 1 shows the Financials Sector SPDR (XLF) climbing to the highest level in three months and challenging its 200-day moving average (red arrow). The dotted line, which is the XLF/SPX relative strength ratio, jumped this week for the first time since February. Banks played a big role in the week’s rally, as did brokers and life insurers. The market usually does better when financial stocks are helping.