The resonant nonlinear refraction of light in CO and gas at a peak intensity of was demonstrated using time- and frequency-resolved measurements of self-focusing and self-defocusing. The nonlinearity of these molecular gases exhibits intensity-dependent sign reversals and a response time. A change from self-focusing to self-defocusing or vice versa was observed to occur for Rabi frequencies that are comparable to the collisional linewidth. A density matrix model for the nonlinear susceptibility of a strongly driven two-level system provides a qualitative explanation for these results.