TradingKey – FAA issues regulatory requirements, Musk denies AI hardware; two major negative news items spark a plunge in SpaceX stock, with a potential short-term retest of the $150 bottom.

On July 1, Eastern Time, Elon Musk’s space exploration technology company, SpaceX ( SPCX) saw its stock price plunge 7.8% to close at $157.54, ending a three-day winning streak. Over the previous three trading days, SpaceX’s stock had steadily climbed, rising from around its low of $150 to over $170, marking a cumulative rebound of about 13%.

The most direct catalyst for the immediate dive in SpaceX’s stock price at the market open that day was regulatory headwind. On Tuesday, the Federal Aviation Administration (FAA) formally announced that to prevent…