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Index Update: The benchmark S&P/TSX Composite Index ended higher by 56.90 points or 0.23% at 24,846.20, after scaling a low of 24,771.89 and a high of 24,884.20 intraday.

Macro Update: The Canada Mortgage & Housing Corporation, housing starts in Canada dropped by 13.35% month-over-month to 231,500 units in December, the lowest level in three months.

Top Movers: Molson Coors Canada (TPX.B.TO), Aritzia Inc (ATZ.TO), Celestica Inc (CLS.TO), Capital Power Corporation (CPX.TO), Emera Inc (EMA.TO), Brookfield Renewable Corporation (BEPC.TO) gained 2.5 to 4.6%.

Our Stance: The index is currently testing a key support level at 24,400, which has held steady thus far. Maintaining this level is critical to avoid a deeper pullback. A break below 24,400 could lead the index to test lower support zones in the 24,200–24,400 range.

Commodity Update: The Japanese yen is set for its best weekly performance in over a month, as market expectations rise that the Bank of Japan will raise interest rates next week. Positive data, including strong wage growth and persistent price pressure, have fueled this outlook, with traders assigning an 80% probability of a rate hike. Meanwhile, in commodities, gold dipped 0.13% to $2,747.30, silver fell 0.34% to $31.61, and copper rose 0.30% to $9,274.50. Brent crude climbed 0.20% to $81.42 per barrel, extending its weekly gains due to supply concerns from U.S. sanctions on Russian oil producers and potential Fed rate cuts.

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Technical Update: On Thursday, the S&P/TSX Composite Index rose by 56.90 points (+0.23%), closing at 24,846.20, signaling renewed optimism among investors. The rally was primarily driven by the technology sector, which posted a strong 0.90% gain, reflecting robust momentum and positive sentiment in the market. The index remains above its 21-period Simple Moving Average (SMA), supporting a bullish outlook. This suggests that the recent gains are part of a corrective rally rather than a reversal of the broader uptrend. The RSI stands at 48.06, a neutral position. This indicates the market has room to advance further before approaching overbought conditions. The index is currently testing a key support level at 24,400, which has held steady thus far. Maintaining this level is critical to avoid a deeper pullback. A break below 24,400 could lead the index to test lower support zones in the 24,200–24,400 range.

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