A new targeted essentially non-oscillatory (TENO) limiter with adaptive dissipation has been developed for the 3rd- and 4th-order spectral difference method. This limiter can potentially be useful for other nodal-based discontinuous high-order methods as well. Unlike traditional WENO limiters for these methods which limit low-order moments one by one, the new limiter is based on a direct convex combination of reconstruction polynomial candidates. This strategy ensures the good computational efficiency for high order reconstructions. The reconstruction stencils only involve nodal values from the target cell and its neighbors sharing faces with it. The reconstruction employs Hermite polynomials, making the new limiter compact. It can be implemented in a dimension-by-dimension manner for multi-dimensional problems, which is consistent with the spectral difference method. To further enhance efficiency, a TENO-based troubled-cell indicator is also developed to only activate limiters in troubled cells. Extensive one-dimensional and two-dimensional numerical experiments validate the performance of the new TENO-based limiter and indicator. In summary, the limiter is much less dissipative than WENO limiters and can resolve richer small-scale flow structures on coarse meshes. The indicator precisely marks out troubled cells, slightly improving over the KXRCF indicator.