What is illogical about the market selling to de-risk its exposure to capital loss? It is more illogical to hold an entire portfolio in a sellers market and experience the capital loss.
If one decided for example to allocate say 33% of their holding to trading for equity growth and the balance just ride it out either way (assuming a long term confidence in the fundamentals), then selling that 33% when the chart screams .. 'sell' is not illogical, particular if that 33% is used to buy again when the chart screams .. 'buy'.
The alternative is to watch ones capital be eroded by the market sentiment and call it illogical. It is not the retail investors who drive the market, sometimes it's better just to follow the money.