The Canadian market settled higher on Thursday

Image Souce: Krish Capital Pty Ltd

Index Update:  The Canadian market settled higher on Thursday with the benchmark S&P/TSX Composite Index moving on to a new record high. The benchmark S&P/TSX Composite Index, which climbed to a new all-time high of 25,137.70, settled with a gain of 60.65 points or 0.24% at 25,049.67, closing past the 25,000 mark for the first time.

Macro Update: The U.S Labor Department released a report this morning showing first-time claims for U.S. unemployment benefits unexpectedly edged lower in the week ended November 9th. The report said initial jobless claims slipped to 217,000, a decrease of 4,000 from the previous week's unrevised level of 221,000. Economists had expected jobless claims to inch up to 223,000.

Top Movers: Pollard Banknote (PBL.TO) climbed 10.5%. Vermilion Energy (VET.TO) gained 6.8%. Maple Leaf Foods (MFI.TO) closed up 5.2%. Aecon Group (ARE.TO), CI Financial Corp (CIX.TO), Parklans Corporation (PKI.TO), Imperial Oil (IMO.TO), Precision Drilling Corporation (PD.TO), Agnico Eagle Mines (AEM.TO), Suncor Energy (SU.TO), Brookfield Business Partners (BBU.UN.TO), Boyd Group Services (BYD.TO) and Franco-Nevada Corporation (FNV.TO) gained 2 to 4%.

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 of around 24,400. 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 23,900 and 23,400. It will be important for the market to hold above these levels to avoid more significant downward pressure.

Commodity Update: The U.S. dollar was poised for strong weekly gains on Friday, nearing one-year highs as hawkish remarks from Fed Chair Jerome Powell pushed short-term Treasury yields higher. Powell signalled that there’s no need to rush rate cuts, citing solid economic growth, a strong job market, and inflation still above the 2% target, which tempered expectations for a rate cut next month. In commodities, gold rose 0.06% to $2,574.30 per ounce, silver gained 0.13% to $30.61, and copper increased 0.44% to $9,071 per ton. Brent crude slipped 0.41% to $72.26, weighed down by oversupply and demand concerns.

Technical Update: On Thursday, the S&P/TSX Composite Index posted a modest gain of 60.65 points, closing at 25,049.67, reflecting a slight 0.24% increase. This small uptick, while seemingly minor, suggests solid investor confidence and strong market participation, with notable contributions from the energy sector, which rose by 2.36%. 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 69.74 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 of around 24,400. 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 defence at 23,900 and 23,400. It will be important for the market to hold above these levels to avoid more significant downward pressure.