The Technical Take

The market responded well to some key tests yesterday--most notably, small caps climbing back out of the grave to resuscitate the potential for a successful hold of support and the formation of a double-bottom pattern at the summer lows. Large-cap index plays also managed to pull off the job of reclaiming 20-day and 50-day moving averages, which now sit underneath as potential support once again.And all of this happened despite new monthly highs in rates and new 2023 highs in oil, which is now firmly trading above $90/bbl.It will be interesting to see if this resilience can maintain itself as we close out the week with a major quad witching expirations day. Intermarket ActionThe 10-Year Yield ($TNX) has been a key focus as rates surge back above the key 4% zone. With the Fed potentially on hold, the economy continues to show signs of strength that suggest an inverted curve may be untenable. However, traders must also appreciate the possibility of a double-top now cementing itself...