Canada equities were higher at the close on Monday

Index Update:  Canada equities were higher at the close on Monday as gains in the IT, Industrials and REITs sector led shares higher. The benchmark S&P/TSX Composite added 0.65% to hit a new all-time high.

Macro Update: The EU announced it will suspend the implementation of its trade countermeasures against the U.S. until early August to allow more time for a negotiated settlement to the issue. The EU's retaliatory tariff on $25 billion worth of American goods for the 25 percent import duty that the U.S. imposed on steel and aluminum imports from Europe was set to come into force Monday.

Top Movers:  Thomson Reuters Corp rose 7.74% to trade at 293.53 at the close. Energy Fuels Inc. added 6.08% to end at 9.59 and Shopify Inc was up 4.26% to 159.95 in late trade.

Our Stance:  From a technical perspective, the index is currently testing a critical support zone near 26,900. Holding above this level is crucial for maintaining upward momentum. A decisive break below 26,900 could signal a potential retracement, with the next key support levels seen between 26,600 and 26,400 on the daily chart. Sustaining these levels will be essential for the bullish trend to remain intact in the near term.

Commodity Update:  The dollar held firm on Tuesday amid trade talks and ahead of key U.S. inflation data and bank earnings. Oil prices slipped after President Trump gave Russia a 50-day deadline to end the Ukraine war or face energy sanctions. Japanese bond yields hit multi-decade highs ahead of elections. In commodities, gold dipped 0.02%, silver fell 0.74%, copper eased 0.25%, and Brent crude edged down 0.20% to $69.06.

Technical Update:

The S&P/TSX Composite Index delivered a strong performance on Monday, rising 175.60 points (+0.65%) to close at 27,198.85, driven by high trading volumes that signal continued investor optimism. Leading the rally was the technology sector, which surged 2.16%, reflecting growing confidence in tech stocks. From a technical standpoint, the index remains well-positioned, continuing to trade above its 21-period Simple Moving Average (SMA)  a key level that underpins the broader bullish trend. The Relative Strength Index (RSI) sits at 70.95, indicating solid market strength while remaining just below overbought territory, which leaves room for further upside. The index is currently testing a critical support zone near 26,900. Holding above this level is crucial for maintaining upward momentum. A decisive break below 26,900 could signal a potential retracement, with the next key support levels seen between 26,600 and 26,400 on the daily chart. Sustaining these levels will be essential for the bullish trend to remain intact in the near term.