Bank of America technical analyst: S&P 500 Index may face a three-wave correction, falling to 6,850 points

The head of technical analysis research at Bank of America stated that investors should hedge as the S&P 500 Index rises and prepare for a possible "three-wave correction" in the coming months. Paul Ciana of Bank of America wrote in a research note on Thursday that the S&P 500 Index has risen nearly 17% since its March low, but the upward momentum has shown signs of fatigue since reaching a recent high on June 2. The index could fall to 6,850 points, a decline of about 7.6% from current levels.