Interest rates have been rising for a while without putting a dent in optimism. Stocks start to drop. Investors enthusiastically buy the dip. Business growth tops out and declines. High interest rates level out and drop a bit.
Stocks stage occasional, strong rallies and investors buy.
Then the market drops again. Interest rates fall. Stocks rally strongly, but investors worry that it's just another fake-out. So they sit on the sidelines or sell. Business improves, interest rates stay low, and stocks continue to rise.