It has been a mixed cash open for U.S. equities, with the DJIA slightly in the red and the S&P 500 up moderately. Traders appear locked in a stalemate near the key area of 25,000 in the DOW. Following this morning’s news out of North Korea, U.S. equities are trading in a tight range.

The announcements from North Korea regarding an April summit with South Korea and possible denuclearization are being met with intense skepticism from geopolitical analysts. Many are calling the April North Korea/South Korea summit an effort to buy time from Kim Jong Un.

President Trump has taken to Twitter, stating that the U.S. is ready to “go hard in either direction.” No doubt, it will be fascinating to see how the next six weeks unfold.

DJIA Technicals

Awhile back we talked about the importance of the 25,000 level to U.S. and global markets. Since then, neither bulls nor bears have been able to drive price from the area.

At press time, the E-mini Dow is trading in a tight range between two support and resistance levels. Price has rejected topside resistance and is rotating back into Monday’s range.

Here are several key areas to watch for the remainder of the U.S. session:

• Resistance(1): Psyche Level, 25000
• Resistance(2): Bollinger MP, 25046
• Support(1): Daily SMA, 24695

Bottom Line: Today’s market may provide an opportunity to buy from support in anticipation of price testing 25000 again in the near future. Until today’s close, I will have buy orders in at 24705 on the March E-mini DOW contract. With an initial stop loss at 24670, this trade yields 35 ticks on a 1:1 risk vs reward management plan.