Is the All Ords at a cross-road?

The June 22 post shows the All Ords on the verge of turning blue but facing stiff resistance between 4550 and 4650. The market couldn't punch through and then fell more than 400 points. Now we're here again - in the same resistance zone and tantalisingly close to turning blue. Will the market break through or will it flop like it did in June?

Here's a possible clue. The chart to the left is the DOW for Friday August 5. On that day the US market got some bad economic news. The DOW promptly fell 160 points but later recovered to be down just 21 points at the close. That looks bullish to me.

Here's another clue. The chart to the left is Giralia (GIR). I first mentioned GIR in the July 23 post. I regard GIR as a leading indicator - especially for resource stocks. On that day it turned blue and was looking bullish. It promptly rallied and then took a breather. On Friday in a flat market, GIR jumped out of a small consolidation zone. GIR looks like it is heading to at least $2.85 and maybe $3.20. If it does that the All Ords will test 5,000. But before you rush out and buy stocks, remember there's an awful lot of resistance for the All Ords to get through.