04:22 PM EST, 11/21/2025 (MT Newswires) -- The Toronto Stock Exchange recovered much of its day-prior losses on Friday as concerns around the valuation of AI-related stocks were set aside, at least for now, while Rosenberg Research provided technical analysis that may buoy investors, as BMO said it sees signs that the mood among Canadian consumers and businesses is "lifting from the darkness" .

Despite mixed commodity prices, the resources-heavy S&P/TSX Composite Index closed up 254.10 points, or 0.85%, at 30,160.65. This comes after the TSX was down near 370 points yesterday amid fears of a market correction, spurred by a potential re-pricing downwards of tech stocks and AI-related ones in particular.

Among sectors, Health Care was up 3.15% and Base Metals up 1.9%. Weighing on gains, the Battery Metals Index was down near 5% and Energy eased 0.8%.

In terms of market strategy, Walter Murphy at Rosenberg Research published technical analysis on the S&P 500, which may be of interest to those who invest across North America, and may provide clues as to where equity market are headed.

Since October's high, Murphy noted, the S&P 500 has declined by 5%, which is its largest correction since the index's late April, four-day pullback right after the April 7 low at 4,835. He said a number of indicators are confirming this price weakness by also hitting levels not seen since April. For example, the daily Coppock Curve moved well below its neutral zero line even as the 14-day relative strength index (RSI) moved below "40" for the first time since April 21.

At the same time, Murphy noted, the percentage of S&P 500 stocks trading above their 50-day moving average hit 36.4% earlier this week. The last time it was lower was April 28, when the index was only about halfway through its February to April sell-off. Not surprisingly, Murphy said, the '500 has been closing below its 50-day moving average in recent days. He added it is not just S&P 500 stocks, the percentage of stocks in the broad NYSE Composite that are trading below their 50-day moving average has recently been probing 35%.

Finally, Murphy noted, the percentage of S&P 500 stocks on a point-and-figure buy signal [where charts track only price changes and ignore time] fell below 40% on Monday. This Bullish Percent Index was at 11.8% in April and 76.2% in July.

Murphy said: "All of this suggests that the index is short-term oversold. This allows for a rally. However, the expectation is that a coming rally will be a countertrend event."

"So, for now," he added, "the S&P 500's post-April rally is bending, but it has not broken." He noted the index was still managing to hold above 6,550 as of Wednesday. Murphy said the rally will "continue to be given the benefit of the doubt above this level", while a breakdown would break the post-April series of higher highs and higher lows. "It would also do much to complete a top formation and set the stage for additional weakness. For reference, a normal minimum expectation for a Fibonacci 38.2% retracement of the post-April rally to date would imply a decline to the 6,125 area," he added.

Meanwhile, BMO Capital Markets chief economist Douglas Porter in his weekly 'Talking Points' note said even amid a sluggish growth backdrop, there are signs that the mood among Canadian consumers and businesses is lifting from the darkness earlier this year. For example, he noted, the CFIB reports the index on the 12-month outlook hit its best level of the year in November at 55.5, a reading that is almost back to the average over the past decade. "That helps somewhat close the curiously wide gap between extremely weak business sentiment on the one side, and record equity prices on the other side. Of course, unfortunately some of the narrowing has been driven by a moderate retreat in stocks, with even the previously world-leading TSX succumbing to gravity, pulling back roughly 3% from last week's record high," he added.

Of commodities, gold traded higher by midafternoon Friday on revived hopes around a December interest rate cut from the Federal Reserve after a bullish U.S. jobs report. Gold for December delivery was up $16.30 to US$4,076.30 per ounce.

But West Texas Intermediate crude oil closed lower, falling for a third day to a month low on abundant supply even as gasoline and diesel demand remains solid amid declining availability. WTI crude oil for January delivery closed down $0.94 to settle at US$58.06 per barrel, the lowest since Oct.21, while January Brent crude was last seen down $0.78 to US$62.61.