When the last bear capitulates, it’s time to start selling. That was the view of many traders this week when they heard Bob Janjuah, RBS’s chief markets strategist, had thrown in the towel

At the start of August, Mr Janjuah, who has a reputation as an uber-bear (albeit one who has called the twists and turns of the market better than most), said he would consider his negative view on risky assets “closed out” if the S&P 500 finished above 1,022 for four consecutive sessions. If that happened it would show a money illusion bubble had been created and the lunatics were back in charge of the asylum, he said.