The Canadian market ended on a weak note on Friday

Image Souce: Krish Capital Pty Ltd

Index Update: The TSX Composite extending losses to a fifth straight session, on concerns about the outlook for economic growth, and on uncertainty about the outcome of the upcoming U.S. presidential election. The benchmark S&P/TSX Composite Index ended the day's session with a loss of 87.88 points or 0.36% at 24,463.67. The index dropped nearly 1.5% in the week.

Macro Update: Data from Statistics Canada showed retail sales in the country likely increased by 0.4% from the previous month in September, according to flash estimate.

Retail sales increased 1.4% in August over the same month in the previous year while Manufacturing sales in Canada decreased by 0.8% in September from -1.3% in August.

Another data from Statistics Canada said the new house price index in Canada remained unchanged at 0% in September. On a yearly basis, the index increased to 0.2% in September from 0% in August.

Top Movers: Winpak Ltd. (WPK.TO) climbed more than 4.5%. goeasy (GSY.TO) gained about 3.2%. Celestica Inc (CLS.TO), West Fraser Timber (WFG.TO), Teck Resources (TECK.B.TO), Precision Drilling Corporation (PD.TO), Imperial Oil (IMO.TO), Morguard Corporation (MRC.TO) and Boyd Group Services (BYD.TO) advanced 1 to 2.6%.

Our Stance: The focus now shifts to key technical levels, particularly the immediate support at 23,920. A hold above this level could set the stage for a rebound, while a breach may indicate a shift in momentum and trigger deeper corrections, with additional support zones at 23,400 and 23,000. Looking ahead, investors will likely adopt a cautious stance, weighing the potential for further gains against the risks posed by sector weaknesses and broader market fluctuations.

Commodity Update: On Monday, currency markets remained steady, with the dollar poised for its largest monthly gain in 2.5 years, driven by strong U.S. economic indicators and speculation around a potential Donald Trump presidency boosting U.S. yields. In commodities, gold fell 0.31% to $2,746.20 per ounce, silver decreased 0.60% to $33.57, and copper slipped 0.15% to $9,558.00 per ton. Brent crude futures dropped 4.1% to $72.97 a barrel as concerns over Middle East tensions eased following a less severe Israeli strike on Iran. Investors are now focused on upcoming U.S. GDP data and developments in the election.

Technical Update: The S&P/TSX Composite Index's close at 24,463.67 on Friday, reflecting a 0.36% decline, highlights a moment of vulnerability in the market, particularly driven by the 0.60% drop in the industrials sector. This sector's struggles have undoubtedly impacted overall market sentiment, raising questions about the sustainability of the current uptrend. Despite this pullback, the index's position above the 21-period Simple Moving Average (SMA) suggests that the short-term trend remains intact. However, the focus now shifts to key technical levels, particularly the immediate support at 23,920. A hold above this level could set the stage for a rebound, while a breach may indicate a shift in momentum and trigger deeper corrections, with additional support zones at 23,400 and 23,000. Looking ahead, investors will likely adopt a cautious stance, weighing the potential for further gains against the risks posed by sector weaknesses and broader market fluctuations.