TSX posted new record closing highs

Image Souce: Krish Capital Pty Ltd

Index Update: The benchmark S&P/TSX Composite Index climbed to a new high of 24,179.28 and settled at 24,162.83, gaining 194.33 points or 0.81%. The index gained about 0.45% in the week.

Macro Update: Data from the U.S. Labor Department said non-farm payroll employment jumped by 254,000 jobs in September after climbing by an upwardly revised 159,000 jobs in August.

Economists had expected employment to rise by 140,000 jobs compared to the addition of 142,000 jobs originally reported for the previous month.

Top Movers: Tamarack Valley Energy (TVE.TO) ended 4.5% up. Cenovus Energy (CVE.TO), Arc Resources (ARX.TO), Tourmaline Oil Corp (TOU.TO), Mattr Corp (MATR.TO) and Parex Resources (PXT.TO) gained 2 to 2.7%.

Our Stance: Currently, the index is testing a crucial support level around 23,450. Maintaining this support is vital for sustaining upward momentum; a fall below could trigger a pullback, with key support levels identified between 23,000 and 22,560. For continued growth, it is essential for the index to remain above these levels.

Commodity Update: The dollar continued its rally on Monday, driven by strong U.S. jobs data and rising tensions in the Middle East. The latest jobs report revealed the largest increase in employment in six months for September, a declining unemployment rate, and significant wage growth, indicating a robust economy. This has led markets to reassess expectations for Federal Reserve rate cuts. In commodities, gold fell 0.10% to $2,665.00 per ounce, silver decreased 0.20% to $32.32, and copper remained steady at $9,969.00 per ton. Brent crude is down by 0.5% to $77.62 per barrel amid escalating regional conflict threats.

Technical Update: On Friday, the S&P/TSX Composite Index rose by 194.33 points, closing at 24,162.83 a 0.81% increase reflecting strong investor confidence and robust trading activity. The technology sector played a significant role in this uptick, gaining 2.04%, fueled by optimism in tech stocks. From a technical perspective, the index is comfortably above its 21-period Simple Moving Average (SMA), signaling a bullish trend. The Relative Strength Index (RSI) is at 69.92, indicating that while the market is healthy, it is not yet overbought, allowing room for further upside. Currently, the index is testing a crucial support level around 23,450. Maintaining this support is vital for sustaining upward momentum; a fall below could trigger a pullback, with key support levels identified between 23,000 and 22,560. For continued growth, it is essential for the index to remain above these levels.