Update: The Rates Trap Springs as Yields Threaten a BreakS&P 400SPCFD:MIDROW_PartnersThe macro script shifted today. The US 10 Yr yield was not running earlier in the morning, but it has suddenly caught a strong bid and is aggressively moving to retest its highs. The front end 2 Yr yield bounced off support, and the 10 Yr RSI is hooking sharply upward. That move puts the multi month bearish momentum divergence in immediate danger of breaking to the upside. Keep in mind that this is intraday action, so the daily closing print will be critical since price action can always shift before the closing bell. Mid Caps MID: Fundamental Pressure and Weakening Momentum Unlike previous pullbacks where institutional dip buyers stepped in rapidly, the daily RSI has dumped into the mid 30s with zero dynamic bounce. Mid cap heavy cyclicals and capital goods manufacturers are the first to feel sticky borrowing costs eat into cash flows and profit margins. With momentum bars rolling over, mid caps are showing clear signs of buyer exhaustion under the weight of higher rates. Small Caps RUT: Living on Borrowed Time Russell 2000 small caps are still hovering inside their ascending channel near 2,980, but underlying momentum is exhausted. IWM Small caps carry significant floating rate debt and higher refinancing vulnerability. Daily RSI has failed to expand into new high territory, signaling that the move is running on thin breadth. With mid caps already weakening under rate pressures, small caps look vulnerable to following closely behind. The Main Takeaway Higher borrowing costs are no longer just background noise, they are actively forcing a repricing across cyclical assets. As long as the 10 Y yield threatens to punch through 4.75 percent, attempting to catch falling knives in equities or long duration bond plays carries high risk until a true daily rejection candle confirms at the close. TGtg!