Space Exploration Technologies Corp. (SpaceX) failed to sustain its initial surge as the stock encountered significant selling pressure, according to TV host Jim Cramer. The company, which opened at $150 and closed at $201.80 on Tuesday, saw its rally stall at the $208 resistance level. Cramer noted that the stock could not maintain its “meme stock” status and was unable to “sustain the walk up” as profit-taking increased.

Market Dynamics and Resistance

SpaceX briefly touched an intraday high of $225.64 on Tuesday before sellers emerged, driving shares back toward the low $200s. Cramer highlighted that the market has shifted to a “two-way market” where both buyers and sellers are active. He stated, “Can’t meme it; too many sellers,” pointing to the increased difficulty of pushing the stock higher purely through retail enthusiasm. The stock was down $4 to $205 in one session, illustrating the volatility.

Analyst Warnings and Wealth Impact

Multiple analysts had previously warned about SpaceX’s rapid rise, with Charlie Billelo of Creative Planning cautioning that the movement echoed the 2021 meme stock era. Investor Gary Black of The Future Fund LLC also suggested the stock might be losing its meme status as options trading allowed investors to bet against it. Despite the pullback, the rally has significantly impacted CEO Elon Musk’s net worth, which reached $1.3 trillion, surpassing the combined wealth of figures like Larry Page, Sergey Brin, and Jeff Bezos.

Technical Outlook

SpaceX continues to trade near the psychologically important $200 level. While the Relative Strength Index (RSI) sits near 55, avoiding overbought territory, the inability to breach the $208 resistance zone suggests consolidation. Traders are watching for a decisive break above this level to trigger further price discovery, though current sentiment indicates that technical levels and seller volume are dictating the trajectory.

Tom Sosnoff, Chief Executive Officer at LossDog, predicted that Space Exploration Technologies Corp. (NASDAQ: SPCX) stock will trade under 135, dropping below its initial public offering price, after revealing he sold his entire allocation at 158. Sosnoff expressed strong conviction that the newly public aerospace giant is bound for a downward correction before the end of the year, dismissing fears of a total collapse to $100 while stating the market's current trajectory is unsustainable.

Speaking on The Drift with Benzinga, Sosnoff pointed toward an aggressive expected move of roughly $75 over the next 60 days. He admitted he wasted no time exiting his initial long position once the equity rallied, contrasting his strategy with his co-host, who kept a partial position. Instead of buying into the long-term retail hype, Sosnoff immediately shifted to exploiting the stock's highly volatile derivatives market.

Options Skew and Strategy

Sosnoff described early call options pricing as ridiculous, driven by an extreme upside skew where calls trade nearly twice as expensive as puts. He explained that investors really bullish on SpaceX should either buy a call spread or sell a put spread to take advantage of the pricing asymmetry. He warned that getting short is structurally difficult due to this massive pricing difference.

Institutional Catalysts

Despite the stock's massive cultural momentum, Sosnoff remains firmly fundamentally bearish, stating he has no interest in buying SpaceX for the long haul. However, he highlighted an impending institutional catalyst: a unique NASDAQ exemption that will force passive index funds to include the stock in their portfolios within three weeks. This sets up a major structural tug-of-war in the market.

Recent Market Performance

After the Federal Reserve held interest rates steady in June at 3.5% to 3.75%, the markets fell on Wednesday. SPCX shares also declined for the first time since listing last Friday. The stock fell by 4.95% to $191.82 apiece and was down 0.81% in overnight trading.