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Let's review what happened: Sephiroth slashes Tifa and knocks her aside, then heads into Jenova's chamber. Zack follows, and is easily defeated and knocked out of the room. Cloud follows, taking Zack's Buster Sword. Now, Sephiroth has turned his attention to Jenova, and isn't watching behind him. Cloud runs in and stabs him with the buster sword. Now, Sephiroth leaves, injured, with Jenova's head. Cloud follows, and Sephiroth says "Don't push your luck", and impales Cloud with the Masamune. Cloud lifts him up by the blade and tosses him into the Lifestream. See, Sephiroth is ALSO severely injured at this point - that, combined with Cloud's anger (a limit break?) is why Cloud can chuck him over the edge.
Yeah, it's what I saw. Cloud probably wouldn't have had much of a chance were Sephiroth not turned around and concentrating on something else.