"There are a lot of people who came in short after the big breakdown in the middle of last week. there was no follow through with the negativity," Cramer said, pointing to the strong earnings report and strong guidance from computer giant Hewlett-Packard.
"Europe is not falling apart, it's just slow growth. China didn't report good numbers, but it's still not that bad. We're just settling into the idea that the sequester is more like a Larry Kudlow view," Cramer said, referring to the CNBC host's recent article on CNBC.com.
Cramer has also been making the case in recent weeks that worries over the sequester have been overblown.
"I think they'll solve it," he said. "I just don't think that there is enough to scare us yet, and meanwhile the defense stocks are red hot," pointing out that the effect of the sequester likely won't hit home for most Americans.
In the end, many are looking at the macro picture, "but then you come in and Hertz reports a fabulous quarter. Take a look at Lowe's — it's easy to poke holes except for the fact that it's up. We have Cooper Tire reporting a good quarter," Cramer said. "Why was Meg Whitman confident last week? The answer may be that it's not so bad."
He added: "People don't realize how amazing the market is. This wall of worry is so in force here, it's pretty amazing."
— By CNBC's Paul Toscano. Follow him on Twitter and get the latest stories from "Squawk on the Street" @ToscanoPaul