Canadian Index closed at a substantial downside on Tuesday

Index Update:  The benchmark S&P/TSX Composite Index regained some ground after an early nosedive but still ended the day down 756.33 points or 2.2 percent at 33,784.94. The index had ended Monday's trading at a record closing high.

Macro Update: As the conflict entered its fourth day, U.S. President Donald Trump suggested the war may last four to five weeks but could "go far longer than that."Secretary of Defense Pete Hegseth also offered few details about the duration of the operation against Iran but claimed it will not be "endless," framing the conflict as a "generational" chance to reshape the Middle East. The price of crude oil has continued to spike in response to the conflict, raising worries the jump in prices will lead to higher inflation. The extended surge in oil prices came amid news Iran has closed the Strait of Hormuz in retaliation for the U.S. and Israeli attacks and threatened to fire on any ship trying to pass through the vital waterway.

Top Movers:  The mining sector was decimated as Agnico Eagle and Wheaton Precious Metals plunged over 8% following a sharp retreat in bullion.

Our Stance: Momentum indicators also remain relatively firm, with the 14-period Relative Strength Index (RSI) at 55.33, suggesting easing but still positive momentum. Immediate support is seen near 33,400, while a sustained break below this level could trigger extended consolidation toward the 33,000 mark.

Commodity Update: The U.S. dollar climbed to a three-month high in Asian trading on Wednesday as investors moved toward safe-haven assets amid escalating Middle East tensions. The euro weakened while commodities gained on fears of supply disruptions. Gold rose 1.04% to USD 5,177.30, silver jumped 1.60% to USD 84.77, and copper advanced 0.99% to USD 13,072.80. Meanwhile, Brent crude gained 1.00% to USD 82.53 as the U.S.–Israeli conflict with Iran threatened regional energy exports.

Technical Update:

The S&P/TSX Composite Index edged lower on Tuesday, settling at 33,784.94 as short-term profit-taking paused the recent upward momentum. While the dip reflects some cooling in buying interest, the broader technical structure remains constructive, pointing to a phase of orderly consolidation rather than the start of a deeper correction. The index continues to trade comfortably above its 50-period Simple Moving Average (SMA), which is acting as reliable dynamic support within the prevailing uptrend. Momentum indicators also remain relatively firm, with the 14-period Relative Strength Index (RSI) at 55.33, suggesting easing but still positive momentum. Immediate support is seen near 33,400, while a sustained break below this level could trigger extended consolidation toward the 33,000 mark.