Canadian stocks closed roughly flat on Wednesday

Index Update:  After opening above yesterday's close, today the benchmark S&P/TSX Composite Index gave back ground from the early gains to trade lower throughout most of the session before settling at 33,254.19, down by 2.64 points (or 0.01%).

Macro Update: On the geopolitical front, Israel wants the recently begun U.S.-Iran negotiations to include Iran's ballistic missiles program and Iran's support to militant groups. Experts are concerned that Iran may refuse and retaliate, starting a war. The geopolitical risk premium supported gold and oil prices, leading to gains in the materials and energy sectors in Canada. In the U.S., data released by the Bureau of Labor Statistics revealed that the economy added 130,000 jobs in January 2026, well above forecasts of 70,000 jobs. The unemployment rate ticked down to 4.3% in January 2026 from 4.4% in December 2025 (slightly below market expectations of 4.4%).

Top Movers: Among the individual stocks, Imperial Oil (4.65%), Kelt Exploration Ltd (4.39%), Tamarack Valley Energy Ltd (4.24%), Novagold Res Inc (13.15%), Discovery Silver Corp (9.52%), and Toromont Ind (6.62%) were the prominent gainers.

Our Stance: Price action is holding near the key 33,200 support zone, which remains crucial for maintaining positive sentiment. Sustained trade above this level would preserve the bullish bias, while a decisive break below 33,200 could weaken momentum and expose the index to a pullback toward the 33,000–32,800 region.

Commodity Update: The U.S. dollar edged higher against most major currencies, supported by stronger-than-expected jobs data that tempered near-term rate cut expectations ahead of Friday’s inflation report. Gold slipped 0.22% to USD 5,086.60, while silver declined 0.60% to USD 83.44. Copper was steady, up 0.01% at USD 13,247.00. Brent crude gained 0.40% to USD 69.64 amid ongoing U.S.–Iran tensions, though rising U.S. inventories capped further upside.

Technical Update:

On Wednesday, the S&P/TSX Composite Index edged down 2.64 points (-0.01%) to close at 33,254.19. Technically, the index continues to trade comfortably above its 50-period SMA, confirming the strength of the short-term uptrend and keeping bullish momentum intact. The 14-period RSI at 60.12 reflects solid buying interest while remaining below overbought territory, leaving room for further gains but also allowing for brief consolidation. Price action is holding near the key 33,200 support zone, which remains crucial for maintaining positive sentiment. Sustained trade above this level would preserve the bullish bias, while a decisive break below 33,200 could weaken momentum and expose the index to a pullback toward the 33,000–32,800 region.