Bulls and bears are furiously debating whether the private sector can withstand a withdrawal of state support following news that the S&P500 index touched the psychologically important 1100 mark overnight.

Earlier this year, the majority of strategists reckoned the the maximum target for the S&P 500 this year was 1100, not seen since last October. It ended trading yesterday at 1098. According to Guy Wolf of hedge fund group Oxburgh: "We believe we are close to the top. The political will to extend monetary and fiscal stimulus programmes which have now concluded is entirely a function of equity markets and is currently lacking. We expect a market correction to refocus minds in Washington."