Space Stocks Come Back to Earth 🛸 The Morning Print

Good morning! 

Space stocks have been hammered over the past couple of months, and are now in their deepest drawdown in more than a year.

Many of these names rallied ahead of the SpaceX IPO, but once SpaceX went public, it pulled liquidity away from the smaller players.

At the same time, the Procure Space ETF (UFO) briefly tagged the 2.618% Fibonacci extension measured from its prior cycle base, an area where profit taking was expected.

Since then, UFO has pulled back to retest its first target at the 1.618% extension.

That level has held as support on multiple occasions so far, and as long as the ETF stays above it, UFO has another date with its second Fibonacci target.

However, if support fails, the next likely destination is a retest of the prior cycle highs near $32, roughly -25% from current levels.