Bank of America Warns S&P 500 Could Face Three-Wave Correction to 6,850, Down 7.9% This Summer

SPX5001.12%
US5000.78%
According to Bank of America technical strategist Paul Ciana, the S&P 500 faces a potential three-wave correction that could drive the index down to 6,850 points from Monday's close of 7,440.43, representing a 7.9% decline. Ciana noted the index has rallied nearly 17% since March lows but has shown signs of fatigue following its June 2 peak. He recommends investors adopt a defensive strategy through July and September, citing elevated correction risks and weakening technical momentum. Key support levels are positioned at 7,200, 7,025, and 6,850 points.
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