Involutive moving frames II; The Lie-Tresse theorem

This paper continues the project, begun in \cite{IMF}, of harmonizing Cartan's classical equivalence method and the modern equivariant moving frame in a framework dubbed \emph{involutive moving frames}. As an attestation of the fruitfulness of our framework, we obtain a new, constructive and intuitive proof of the Lie-Tresse theorem (Fundamental basis theorem) and a first general upper bound on the minimal number of generating differential invariants for Lie pseudo-groups. Further, we demonstrate the computational advantages of this framework by studying the equivalence problem for first order PDE in two independent variables and one dependent variable under point transformations.