Spurs suffered a second successive defeat when beaten 1-0 at Barclays Premier League relegation battlers Norwich on Sunday, having lost the first leg of their Europa League last-32 clash away to Dnipro earlier in the week.
Sherwood's men are now in fifth place, some six points behind Liverpool in the race for Champions League qualification.
However, with the return leg against the Ukrainians and former Spurs boss Juande Ramos on Thursday night swiftly followed by the visit of struggling Cardiff, Sherwood sees no reason why his team cannot produce the required response to set themselves up for testing fixtures against Chelsea and Arsenal.
"Good players and good teams come back when they're down and that's what we've got to do straight away," Sherwood said on Spurs TV.
"We certainly need to have character now to play in front of our home fans after the disappointment of losing to a team around the bottom of the league.
"That happens, what can you do? You can't crawl into a corner and hide. You have to confront it and have a go."
Sherwood was appointed on an 18-month contract after replacing Andre Villas-Boas in December, and at 44, is one of the youngest managers in the Premier League.
However, his long-term future remains subject of some scruitiny, with Holland manager Louis van Gaal recently suggesting Tottenham were set to approach him in the summer after the World Cup.
Canaries manager Chris Hughton, who worked with Sherwood when he was in the Spurs' coaching staff, feels those were unhelpful words from a fellow professional.
"As managers in the game it's not the best policy to be mentioning potential jobs when there are already other managers in the job," Hughton told talkSPORT.
"It's a difficult job as it is and there's a quick enough turnover in management without the mention of potentially other managers coming in.
"So if he has said that, it's certainly not something he should have done."