Technical factors are adding fuel to SpaceX's meme stock fire

SpaceX has been fast-tracked to enter several major stock market indexes and that could eventually ground its stock performance in the broader fundamentals of the tech sector. But before SpaceX goes into those indexes in coming weeks, market forces – amplified by derivative securities based on the stock and maneuvers by big-money investors – could drive the stock price much higher. After less than three days as public company, SpaceX has already soared 55% above its $135 initial public offering price. These financial industry factors have little to do with the SpaceX itself, its various industrial segments or the broader economy. "It's going to be really hard to be negative on this name until you at least get out to the Nasdaq-100 add," Dan Niles, founder of Niles Investment Management, told CNBC Monday. "After that, then things like valuation, et cetera, are going to matter, but as we learned during the meme stock craze, valuations can always go much higher than you ever imagined." High demand, little stock Until then, the basic issue is the high level of demand for stock on top of a tiny amount of shares that are available to trade. Only 555.6 million shares were sold in last week's IPO, representing about 5% of SpaceX's outstanding stock. Another 83.3 million shares will become available as a result of the usual 15% overallotment option given to underwriters. …