The Canadian market ended on a buoyant note on Wednesday

Image Source : Krish Capital Pty Ltd

Index Update: The S&P/TSX Composite Index closed up 363.14 points or 1.47% at 25,069.21, nearly 50 points off the day's high of 25,115.52.

Macro Update: The U.S. central bank announced its widely expected decision to once again leave interest rates unchanged, but projections signaled the central bank is still likely to lower rates later this year.

Top Movers: Celestica, Corus Entertainment, Advantage Oil & Gas, AtkinsRealis, Baytex Energy, Computer Modelling, Interfor, Brookfield, Novagold Resources, Bombardier, Jamieson Wellness, Cineplex, Real Maters, Canfor, Brookfield Infrastructure Partners and Whitecap Resources gained 3 to 5.4%.

Our Stance: The index is holding above its 21-period Simple Moving Average (SMA), reinforcing a bullish outlook. However, the index is currently testing a critical support level of around 24,700. Holding above this level is crucial to sustaining the upward trend, while a drop below could trigger a pullback, with key support levels between 24,500 and 24,200. 

Commodity Update: The dollar weakened on Thursday after the Federal Reserve signalled potential interest rate cuts later this year, despite concerns over U.S. tariffs. Fed policymakers forecasted two quarter-point rate cuts in 2025, maintaining their outlook from three months ago, even as they anticipate slower economic growth and higher inflation. On Wednesday, the Fed kept its benchmark interest rate steady at 4.25%-4.50%. In commodities, gold rose 0.52% to $3,057, marking a new lifetime high, while silver surged 0.72% to $34.45, and copper increased 0.48% to $10,029.50. Brent crude also gained 0.57% to $71.18, driven by a decline in U.S. fuel inventories and escalating Middle East tensions.

Technical Update: The S&P/TSX Composite Index had a strong session on Wednesday, climbing 363.14 points (1.47%) to close at 25,069.21. Investor sentiment remained positive, supported by robust trading volumes, with the technology sector leading the charge with a 3.67% gain. From a technical standpoint, the index is holding above its 21-period Simple Moving Average (SMA), reinforcing a bullish outlook. The Relative Strength Index (RSI) sits at 52.89, indicating a stable market environment with potential for further gains. However, the index is currently testing a critical support level of around 24,700. Holding above this level is crucial to sustaining the upward trend, while a drop below could trigger a pullback, with key support levels between 24,500 and 24,200. To extend its rally, the S&P/TSX Composite Index must maintain strength above these key support zones.