Canadian stocks slipped on Tuesday

Index Update:  After opening just above yesterday's close, the benchmark S&P/TSX Composite Index lost momentum within an hour and traded firmly negative throughout the session before settling at 31,049.28, down by 52.50 points (or 0.17%).

Macro Update:  To restore the economy and increase investor confidence, Canadian Prime Minister Mark Carney is taking vigorous measures to steer away from the U.S. for defense and economic relations. Yesterday, Canada joined a multibillion-dollar European Union defense fund program, Security Action for Europe (SAFE). Carney stated that Canada's participation in SAFE would help fill key capability gaps and expand markets for Canadian suppliers. Recent economic releases by Statistics Canada revealed that the real GDP rose 2.6% on an annualized basis for the third quarter, well-above the central bank's expectations. Technically, though Canada has avoided a recession in the third quarter, these prints have dampened the spirit of investors about another rate cut in December by BoC. The central bank is set to announce its interest rate decision on December 10.

Top Movers:  Among the individual stocks, Laurentian Bank (18.39%), Energy Fuels Inc (6.97%), Bank of Nova Scotia (2.80%), National Bank of Canada (1.79%), Canadian Imperial Bank of Commerce (1.48%), Shopify Inc (4.90%), and Docebo Inc (3.37%) were the prominent gainers.

Our Stance:  Momentum conditions remain steady, with the 14-period RSI hovering near 59.20, indicating neutral-to-positive momentum. On the downside, immediate support rests near the 31,000 mark—a critical zone that bulls need to defend to avoid deeper corrective pressure. A sustained break below this level could open the door for further downside toward 30,800 and 30,600.

Commodity Update:   The dollar held steady on Wednesday as attention shifted to broader market moves, with traders positioning for potential U.S. rate cuts in 2026 that could pressure the greenback. Gold rose 0.44% to USD 4,253.70, silver gained 1.06% to USD 59.32, and copper inched up 0.33% to USD 11,225.00. Brent crude slipped 0.21% to USD 62.32 as investors assessed whether Russia-Ukraine peace efforts might boost supply amid surplus worries.

Technical Update:

The S&P/TSX Composite Index slipped 52.50 points (−0.17%) on Tuesday to close at 31,049.28, as light profit-taking weighed on sentiment. Despite the modest pullback, the broader technical picture remains constructive. The index continues to hold comfortably above its 50-period Simple Moving Average (SMA), a key dynamic support level that has been reinforcing the short-term uptrend and signaling continued buyer control. Momentum conditions remain steady, with the 14-period RSI hovering near 59.20, indicating neutral-to-positive momentum. On the downside, immediate support rests near the 31,000 mark—a critical zone that bulls need to defend to avoid deeper corrective pressure. A sustained break below this level could open the door for further downside toward 30,800 and 30,600.