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Index Update: The benchmark S&P/TSX Composite Index, which tumbled to 24,693.75 in early trades, closed down 305.63 points or 1.22% at 24,767.73. The index shed about 1.1% in the week.

Macro Update: Canadian employment data came in stronger than expected, reducing prospects of any significant monetary easing by the Bank of Canada.

Data from Statistics Canada showed employment in Canada advanced by 91,000 in December 2024, the largest gain since January 2023, following a 51,000 rise in the previous month.

Meanwhile, the unemployment rate in Canada dropped to 6.7% in December, from 6.8% a month earlier.

Top Movers: Maple Leaf Foods (MFI.TO), Aura Minerals (ORA.TO), Canadian Tire Corporation (CTC.TO), Gildan Activewear (GIL.TO), Lundin Gold (LUG.TO), Suncor Energy (SU.TO), Hut 8 Corp (HUT.TO) and Imperial Oil (IMO.TO) also posted impressive gains.

Our Stance: Key levels are critical in determining the next potential move. The immediate support for the index is seen at 24,300. If the index holds above this level, there could be a chance for a rebound. However, should the index break below 24,300, it could prompt a deeper correction, with the next support zone found at 24,000.

Commodity Update: The U.S. dollar surged at the start of the week, bolstered by a strong jobs report highlighting the nation's economic resilience. U.S. job growth accelerated in December, with the unemployment rate dropping to 4.1%, prompting traders to scale back expectations for Federal Reserve rate cuts in 2025. The dollar's strength left its peers languishing near multi-year lows. In commodities, gold inched up 0.01% to $2,715.70, while silver dropped 0.24% to $31.23. Copper gained 0.50%, reaching $9,126.50. Meanwhile, Brent crude oil climbed 1.81%, settling at $81.22 per barrel, driven by concerns over supply disruptions following the U.S.'s stringent sanctions on Russian oil exports.

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Technical Update: On Friday, the S&P/TSX Composite Index closed at 24,767.73, marking a decline of 1.22%. This drop was mainly driven by the healthcare sector, which saw a significant retreat of 4.38%, adding to the overall negative sentiment across the market. The index is currently trading below its 50-period Simple Moving Average (SMA), which suggests that the short-term downtrend remains intact. Despite the broader decline, the Relative Strength Index (RSI) has risen to 43.61, approaching a relatively high level. While this indicates that the market could be entering overbought territory, it also implies that the downward momentum may lose steam, and a shift in market dynamics might be in the works. Traders are closely monitoring technical indicators to gauge the market's direction in the short term. Key levels are critical in determining the next potential move. The immediate support for the index is seen at 24,300. If the index holds above this level, there could be a chance for a rebound. However, should the index break below 24,300, it could prompt a deeper correction, with the next support zone found at 24,000.

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