A few thoughts: huge amounts of money are now invested in passive funds and indices. Passively invested money, especially in retirement funds, tend to be less l

A few thoughts: huge amounts of money are now invested in passive funds and indices. Passively invested money, especially in retirement funds, tend to be less likely to suddenly flow out (and cause additional stock selling and further pressure prices) based on relatively minor drops. However, if that behemoth does start to move it could, in theory, bring prices much lower than a bunch of disconnected folks reacting in a knee-jerk fashion to bad economic news. Also, with low latency and algorithmic trading I suspect many large investors think that they can move out in time to avoid major losses. If so, they are sitting in while there is no correction and are not upsetting the bull market. Should things go badly they will likely try to move with lightning speed (getting out before most peers do). If enough money managers think this way they can create a pretty powerful shock when they try to outgun each other. Thoughts from the armchair, I am not in the financial industry.