The Canadian market ended marginally down

Image Souce: Krish Capital Pty Ltd

Index Update: The benchmark S&P/TSX Composite Index, which edged up slightly at the start to 24,590.52, fell to 24,372.34 around noon, but recovered gradually to settle at 24,551.55, with a loss of 22.07 points or 0.09%.

Macro Update: In the U.S the Commerce Department released a report showing new home sales surged to their highest level in over a year in September.

Top Movers: Celestica Inc (CLS.TO) soared 18.3%. Celestica reported revenue of $2.50 billion for the third quarter of 2024, up 22% from $2.04 billion in the corresponding quarter of the previous year. Colliers International (CIGI.TO) gained 4.8%. Brookfield Asset Management (BAM.TO), Docebo Inc (DCBO.TO), TFI International (TFII.TO), Gildan Activewear (GIL.TO) and Kinaxis Inc (KXS.TO) climbed 2 to 4%.

Our Stance: The Relative Strength Index (RSI) at 64.86 points to some underlying weakness, suggesting the possibility of further declines if the trend continues. Investors should keep an eye on the key support level at 23,870.50. This rising trend line has been crucial; if the index can stay above it, a rebound may be possible.

Commodity Update: On Friday, the dollar pulled back from recent highs, aligning with a decline in U.S. Treasury yields. Despite this dip, the currency was set for another weekly gain, fueled by expectations of a slower Federal Reserve rate cut pace and growing speculation surrounding a potential second Trump presidency. In the commodities market, gold fell 0.28% to $2,741.20 per ounce, silver decreased 0.25% to $33.71, and copper was down 0.01% to $9,565.00 per ton. Meanwhile, Brent crude futures rose 0.6% to $74.83 amid ongoing tensions in the Middle East and upcoming Gaza ceasefire negotiations.

Technical Update: In Thursday’s trading session, the S&P/TSX Composite Index fell by 22.07 points, closing at 24,551.55, a decline of 0.09%. This decrease was largely influenced by a 0.60% pullback in the utilities sector, contributing to overall negative market sentiment. Despite the drop, the index remains above its 21-period Simple Moving Average (SMA), which is a positive indicator for the short-term uptrend. However, the Relative Strength Index (RSI) at 64.86 points to some underlying weakness, suggesting the possibility of further declines if the trend continues. Investors should keep an eye on the key support level at 23,870.50. This rising trend line has been crucial; if the index can stay above it, a rebound may be possible. Conversely, a break below this support could signal a more difficult environment, with additional support zones around 23,400 to 23,000 potentially coming into play.