Canadian Market Declines Amid Pullback

Index Update: After opening just above yesterday's close, the benchmark S&P/TSX Composite Index turned lower and traded negative throughout the session before finally closing at 30.269.98, down by 232.01 points (or 0.76%).

Macro Update: In the U.S., the minutes of the September meeting of the U.S. Federal Reserve released yesterday revealed that most members of the interest-rate setting committee had supported further reductions as they were concerned that unemployment would rise.

Mirroring the U.S., traders in Canada are expecting a rate cut by the central bank of Canada in its October meeting this month-end. Investors are also focused on the developments in the U.S. amid ongoing government shutdown, which has entered its ninth day today.

Top Movers: Among the individual stocks, Rogers Communications (2.34%), BCE Inc (1.36%), Bitfarms Ltd (5.20%), Celestica Inc Sv (2.46%), and Open Text Corp (2.32%) were the prominent gainers.

Our Stance: The elevated level signals robust bullish momentum but also suggests overbought conditions, raising the potential for short-term consolidation or corrective moves. On the downside, immediate support is identified near 30,100, a key level for bulls to defend. A decisive break below this base could trigger deeper retracements toward 29,900 and 29,800.

Commodity Update: The yen hovered near 153.12 per U.S. dollar, set for its steepest weekly drop in a year as fading prospects of another Bank of Japan rate hike weighed on sentiment. Gold rose 0.71% to $4,000.95, silver gained 0.84% to $47.56, and copper slipped 0.54% to $10,822.45. Brent crude was flat at $65.22, steady after the Israel-Hamas ceasefire eased risk premium, offset by fresh U.S. sanctions on Iran and concerns over weak winter fuel demand.

Technical Update:

The S&P/TSX Composite Index declined by 232.01 points (−0.76%) in Thursday’s session, closing at 30,269.98. The pullback reflected mild profit-taking; however, the broader technical structure remains constructive. From a trend perspective, the index continues to trade comfortably above its 21-period Simple Moving Average (SMA), which acts as dynamic support and reinforces the prevailing short-term uptrend. Sustained closes above this level indicate that buyers remain in control despite near-term fluctuations. Momentum readings further highlight underlying strength, with the Relative Strength Index (RSI) at 67.22. This elevated level signals robust bullish momentum but also suggests overbought conditions, raising the potential for short-term consolidation or corrective moves. On the downside, immediate support is identified near 30,100, a key level for bulls to defend. A decisive break below this base could trigger deeper retracements toward 29,900 and 29,800.