The S&P/TSX Composite Index closed lower on Wednesday

Image Source : Krish Capital Pty Ltd

Index Update: The S&P/TSX Composite Index fell 0.4% to close at 26,329 on Wednesday, pulling back from its record high as investors digested both trade and monetary developments.

Macro Update: The Bank of Canada held its key benchmark rate at 2.75 percent, citing the need to assess the impact of US trade policy, while warning that further cuts could be required if tariffs weaken the economy. Ottawa’s “live” negotiations with Washington to secure exemptions from President Trump’s doubled steel and aluminum tariffs have eased concerns of a broader trade shock and shielded export-dependent sectors. 

Top Movers: The biggest gainers of the session on the S&P/TSX Composite were NovaGold Resources Inc (TSX:NG), which rose 23.98%. Ero Copper Corp (TSX:ERO) added 8.22% and Lundin Mining Corporation (TSX:LUN) was up 4.15%.

Our Stance:The short-term uptrend is still intact, and the recent dip may represent a healthy consolidation rather than the start of a broader reversal. The index is currently holding above the near-term support zone at 26,100—a critical threshold for preserving bullish momentum. If this level holds, it could prompt renewed buying interest and set the stage for a potential rebound toward recent highs. However, a clear break below 26,100 may increase selling pressure, potentially signaling a deeper correction ahead.

Commodity Update: The dollar hovered near six-week lows on Thursday after weak U.S. data fueled fears of slow growth and persistent inflation. The euro remained steady ahead of an expected ECB rate cut. Gold dipped 0.10% to $3,395.95. Silver rose 0.11% to $34.74 per ounce, and copper gained 0.17% to $9,649 per metric ton. Brent crude slipped 0.30% to $64.65 amid rising U.S. fuel stocks and Saudi price cuts for Asia.

Technical Update: On Wednesday, the S&P/TSX Composite Index saw a modest retreat, slipping 97.64 points, or roughly 0.37%, to close at 26,329.00. The decline was primarily driven by broad weakness in the consumer non-cyclicals sector, which dropped by a notable 1.49%. Despite the pullback, the index remains comfortably positioned above its 50-period Simple Moving Average (SMA), a key technical indicator that often acts as dynamic support in trending markets. This suggests that the short-term uptrend is still intact, and the recent dip may represent a healthy consolidation rather than the start of a broader reversal. From a technical standpoint, the focus now shifts to key support levels. The index is currently holding above the near-term support zone at 26,100—a critical threshold for preserving bullish momentum. If this level holds, it could prompt renewed buying interest and set the stage for a potential rebound toward recent highs. However, a clear break below 26,100 may increase selling pressure, potentially signaling a deeper correction ahead.