Apple is expected to earn $13.43 per share, a three percent decline from year ago levels when it reports after Wednesday's close. Amazon reports a week from Tuesday, and it is expected to report lower profits of $0.27 per share but sharply higher revenues of $22.3 billion. (Read More: Apple Earnings Need to Overcome Technical Malaise)
Redler said he is playing Apple by buying $525 and selling $550 calls, but if it misses and falls, he will be buying it. He said there's micro support for Apple at $470 and macro support at $440.
Paul LaRosa, technical strategist at Maxim Group, is also watching tech earnings because of the Nasdaq's failure so far to return to highs.
"The Nasdaq needs to close over 3200. That's the one fly in the ointment," said LaRosa. "If that doesn't happen, with the other three, it could lead to a negative divergence and lead to a sell off. I don't think people can turn totally bullish yet. We're still cautiously optimistic."
The Nasdaq, up 8 at 3143 Tuesday, was at 3196 in September. It last closed above 3200 in November, 2000.
"To me, it's curious why the Nasdaq isn't over 3200, if the others are at highs. Obviously, Apple is a big weighting," he said. For instance, Apple is 14 percent of the smaller Nasdaq 100 index, and was 19 percent before its decline. LaRosa said the Nasdaq's performance will certainly be influenced by the wave of tech earnings. "It's a key week," he said.
But to Worth, it's the whole range of major stocks that aren't moving higher that is the concern, and that's what's holding back the S&P. He also notes that some stocks have already made their moves, such as Ford and Goldman, and they are getting tapped out. He said another negative is that investors—individuals who are starting to put money into mutual funds and hedge funds managers—are all getting too bullish.
The S&P's next milestone would be 1,500, a psychologically key number, but to LaRosa, the number to watch would be 1,575, above its 1,565 closing high from 2007. (Read More:
Are Stock Market Bulls Too Hopeful?
"The longer it takes to punch through the more the likelihood is you're not going to punch through, and you hit a near-term top. The strength has taken some people by surprises but you just can't say buy across the board," he said.
But it could go higher. "Maybe the fear and greed drives the market to extremes. You may have the greed factor and people say 'I'm missing it.' That pushes it to extremes," said LaRosa.
What Else to Watch
Other companies reporting earnings Wednesday include McDonald's, Novartis, SAP, Siemens, United Technologies, Abbott Labs, Coach, and WellPoint, ahead of the opening bell. Besides Apple, Amgen, Altera, F5 Networks, Netflix, Noble, Raymond James, Sandisk, Stryker, Symantec and Western Digital report after the closing bell.
There are two housing-related reports Wednesday. One is weekly mortgage applications at 7 a.m. ET, and the other is the FHFA home price index at 9 a.m.
The House of Representatives is expected to vote on legislation extending the debt ceiling until May, clearing the way for a budget battle with Senate Democrats and avoiding a debt ceiling battle, for now. Part of the bill will suspend Congressional pay as of April 15, until there is a budget accord.