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I am no expert in this and perhaps with the rebound of the stock market my thoughts are off, but it occurs to me that every month pension funds (401K's) invest in the market and somewhere someone is laughing as every month they calculate the bounce for the pension money dumping in and sell at just the right time.

Stock market down - pension money goes in - stock market goes up - profits (worker pensions) are taken - market goes down.

Now I will sit back and wait for those much smarter than me in these matters to reply.

Well, ironically, if everyone knows the market is going up, it has to go down.

Understand, you don't know, something unless you're betting heavily on it. If everyone's betting heavily on it, there's no one else to put money in. When that happens, there's nothing to keep the prices up.

The same thing happens in reverse, in a recovery.
Maybe now? (If I knew, I could make a fortune couldn't I?)