NEW YORK ( TheStreet) -- This week marks an important turning point for the U.S. economy and financial markets. Earnings remain in full swing, and due to mixed results, investors have been wary to push equities above all-time highs.On the economics front, data from the Federal Reserve and labor market take the spotlight. There were reports last week that the Fed is leaning toward a more dovish stance than had been expected. That pushed the U.S. dollar lower and assets responded as if the end of quantitative easing would be delayed. The Fed convenes this week, and if the reports prove true and monetary policy remains accommodative, risky assets will get bid higher. Nonfarm payrolls will be released on Friday. That will be a good indicator of whether the economy is truly improving. If the number comes in at an extreme on either end of the spectrum, markets will adjust their rates hike horizon. RSP) over SPDR S&P 500 ( SPY). This pair measures market breadth, or the amount of participation in equity index moves. If the pair goes up, then a majority of the stocks in the index are following suit. This pair has recently spiraled lower off yearly highs and begun a trend lower. That is a bearish signal that will either be confirmed or adjusted after this week's events. Expectations for higher rates will surely push the pair further into a downward trend.