Try LVL Change and instead of ECON 0.77 (I know most of you chums fly at .80 on the 737 anyway) try LVL CHange 0.80 when approaching lvl, keeps the ROC down but will ensure that you get there.
I just look at the ROC (approaching FL400) its normally less than 1500 fpm anyway, so leave it in VNAV.
and yes that pitch down recovery is not desireable i can tell from firsthand experience. it feels exciting for your pax down the back too!