The Canadian market ended the day's session on a flat note

Index Update:  The benchmark S&P/TSX Composite Index ended at 24,256.06, up less than a point from the previous close. The index, which climbed to 24,353.36 early morning, dropped to a low of 24,162.22 at noon.

Macro Update: The Fed is widely expected to lower interest rates by another 25 basis points, but traders will be looking to the accompanying statement for clues about the likelihood of future rate cuts.

Top Movers: Nutrien (NTR.TO), TerraVest Industries (TVK.TO), Brookfield Renewable Partners (BEP.UN.TO), Brookfield Renewable Corporation (BEPC.TO), Tecsys Inc (TCS.TO), Precision Drilling Corporation (PD.TO), Cogeco Inc (CGO.TO), Celestica Inc (CLS.TO) and Brookfield Asset Management (BAM.TO) gained 2.5 to 4.6%.

Our Stance: The current reading still supports the idea that the market has room for further upside, assuming buying momentum continues. The index is currently testing a crucial support level around 23,850. This is a key threshold for maintaining the current bullish trend. A drop below this level could signal a pullback, with the next lines of defense at 23,400 and 23,000.

Commodity Update: The U.S. dollar started Tuesday on the back foot as traders adjusted positions ahead of the U.S. presidential election, following polls that weakened bets on a Republican win by Donald Trump. In commodities, gold and silver declined, with gold dropping 0.46% to $2,734.50/oz and silver falling 0.59% to $32.42. Meanwhile, copper rose 0.54% to $9,734.50/ton. Brent crude eased 0.2% to $74.93/barrel after a recent rally, as investors awaited election results and a key political meeting in China for further market direction. Oil surged Monday after OPEC+ postponed production increases, tightening the supply outlook. All eyes are now on the election and the upcoming FOMC rate decision for more clarity on market trends.

Technical Update: On Monday, the S&P/TSX Composite Index posted a modest gain of 0.90 points, closing at 24,256.06, reflecting a slight 0.004% increase. This small uptick, while seemingly minor, suggests solid investor confidence and strong market participation, with notable contributions from the real estate sector, which rose by 0.91%. The index’s technical setup remains positive, with the S&P/TSX holding comfortably above its 21-period Simple Moving Average (SMA), signaling an ongoing bullish trend. The Relative Strength Index (RSI) at 74.43 remains a key indicator to watch. While this level indicates the market is in healthy territory, it also brings the index close to the overbought zone, raising the potential for a near-term correction. However, the current reading still supports the idea that the market has room for further upside, assuming buying momentum continues. The index is currently testing a crucial support level around 23,850. This is a key threshold for maintaining the current bullish trend. A drop below this level could signal a pullback, with the next lines of defense at 23,400 and 23,000. It will be important for the market to hold above these levels to avoid more significant downward pressure.