Moment of truth for Dow, All Ords

Anyone trying to gauge whether equity markets are going to continue their upward movement should be taking a close look at the main indices over the next few days. I focus on the Dow Jones Industrial Average (DJIA) and the All Ordinaries (Australian ASX) because the US leads the global market and the All Ords is sensitive to the global outlook for commodity stocks.
Looking first at the Dow, its apparent to me that the index is at a critical point where it could go either way. It might shrug off the negative news in the housing sector. At this point in time 2AM Eastern Standard Time (Sydney) the US market is down 44points, though it appears to be holding.

The ASX is at a similar turning point with the index surging over the last week to over 6200 points, not far off its high of around 6400 points. I personally dont see the ASX breaking its current resistance, even though the index finished just off its daily high. I think the index will face selling tomorrow, but I will wait for direction from the market because there are alot of 'political wills' that want this market to go higher. Notwithstanding the uncertainty, the volatility is making great trading conditions.

The gold index is poised for similar direction from the markets. We are still waiting for a break out on the up or downside. I actually think gold will fall off, along with equity markets, with $US550/oz my target.

We might know if I am wrong or right tomorrow, but it might otherwise take a day or two.