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Smallmatrix from AMS-TeX is not implemented in ConTeXt (Tex Live 2015),
though crossed out in m-newmat.tex.
You can create your own matrix environment for inline use:
\definemathmatrix
[smallmatrix]
[left=\Big(,
right=\Big),
style=\scriptstyle,
strut=0.7,
distance=.25em]
\starttext
This is a example \m{ \startsmallmatrix \NC a \NC b \NR \NC c \NC d \NR
\stopsmallmatrix } for a smallmatrix environment.
It looks pretty much like the AMS-LaTeX variation. Below is another example of
use, as a displayed formula.
% Defines a small two-by-two matrix.
\def\twomatrix#1#2#3#4{\startsmallmatrix\NC{#1}\NC{#2}\NR\NC{#3}\NC{#4}\NR\stopsmallmatrix}
% The Pauli spin matrices, explicit forms.
\def\pspint{{\twomatrix1001}}
\def\pspinx{{\twomatrix0110}}
\def\pspiny{{\twomatrix0{-핚}핚0}}
\def\pspinz{{\twomatrix100{-1}}}
Pauli spin matrices
\startformula
σ^0 ≔ \pspint, \quad σ^3 ≔ \pspinz, \quad
σ^1 ≔ \pspinx, \quad σ^2 ≔ \pspiny
\stopformula
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