Barry Ritholtz — who presciently started turning bullish back in March — says much of the market’s oversold status has been worked off, but thinks the market could continue to head upward into the fall.

Ritholtz, of FusionIQ and The Big Picture blog, tells Yahoo! TechTicker that mutual fund managers have gone from a very low average exposure to equities during the financial crisis back to the more invested levels at which they were back in October of 2007. “We’ve worked off lots of that oversold position,” he says, “[But] it’s not a sign the rally is over. It’s a sign that one source of fuel is starting to run low.”

Ritholtz says this is a traders’ rally — not a multi-year rally, but he “wouldn’t be surprised to see 60, 70, 80 percent” gains before the market’s rise ends. He thinks we could see the S&P 500 hit 1,050 to 1,080, and, potentially, as high as 1,200. But he advises investors to be cautious, and use stop-loss positions to avoid losses if things head south.