Does taking a 401k loan have the same effect as a hedge against a down market?

1. I have a 401k balance in the low six figures.
2. I maximize my contributions every year to the IRS max and my employer has a 6% match. This results in about ~$35k of new money going into my account every year
3. I see myself as having the option to retire early in about 10 years (I'll be in my mid-50s) but I could also see myself working beyond that, I enjoy my job.

Does taking out a 401k loan serve as a hedge against a falling market? Let's assume that I predict a falling market in the next 2-3 years. All of my read on the 401k loan documents says that the money is effectively pulled from the market and it won't be benefiting from gains. But does the same hold in the other direction? My intuition tells me that it does, that I should be able to limit my exposure because I now have a "smaller" balance. Is that correct? What am I missing here?