The % of stocks above the 50ma has broken out above a downsloping trendline after a rally initiation move above the lower swing high. This fact suggests that the current rally has greater potential than it may have seemed earlier. Notice how the indicator declined in a series of lower highs after the last two moves up from a major low. It doesn't mean it will be pretty, but I think the bears are going to be disappointed.
On the other hand the # of new 52 week highs has not been very impressive compared to prior rallies. This may reflect an underlying weakness, or it just may mean that the market more oversold than before previous rallies.
I am now fully allocated to the long and plan to remain that way into at least early December. Positions that hit profit targets or get stopped out will be replaced with new positions until momentum begins to wane.
I will discuss my methods for finding stocks to trade this weekend.