Cramer: Record highs put market in 'sweet spot'

Cramer: Sweet spot for market

With the Dow closing off its second-consecutive record high and the Nasdaq making up lost ground, the market appears to be in a "sweet spot," CNBC's Jim Cramer said Tuesday.

The ongoing bull market has been riding great rotation after great rotation since the 2008 financial crisis and into its current highs, Cramer said. He added that the recent one affecting a slice of high-momentum, biotech and Internet stocks seems no different. The also reached 1,900 points for the first time Tuesday.

"Great rotations the whole way up," Cramer said on "Squawk on the Street." "I've never felt that a bull market ages. I'm not saying it's a fine wine here. It's not like a great cabernet."

The bounce back in hard-hit names pokes holes in the "bubble talk" surrounding the tech and biotech sectors, Cramer said. Some thought the declines in the Nasdaq and Internet plays would bring down the Dow, he said, but that's been the opposite of what's been happening.

Read MoreCramer: Don't fret about this 'incredible, shrinking bubble'

Cramer said the rally could cause Wall Street to come out in support of stocks like—the "umbrella" of the software-as-a-service section of Internet stocks and what Cramer calls a bellwether of the rotation out of those stocks.

"The analysts are all making a stand today on cloud and Internet because they saw the bounce yesterday," Cramer said. "There's so many IPOs in the chute, they almost have to come out and make a defense right here. They're out of their fox holes, making their move."

—By CNBC's Jeff Morganteen.

Disclosure: Cramer's charitable trust does not have a position in