Intuitive Machines Inc. (Intuitive Machines (LUNR)) stock is having a rough Tuesday, down nearly 8% as traders rotate capital into a shiny new space stock and worry about dilution from a massive share offering.

The big story here is SpaceX. The Elon Musk-led rocket company went public on Friday, and investors are scrambling to get a piece of it. On Tuesday, SpaceX stock gained 10%, while Intuitive Machines and other secondary space plays got sold off to fund those purchases. It's a classic case of the new kid on the block stealing the thunder—and the dollars.

But SpaceX isn't the only headwind. On June 4, Intuitive Machines announced an at-the-market equity offering program that allows it to sell up to $500 million of Class A common stock over time through a syndicate of investment banks. That filing is still hanging over the stock like a cloud, because any sale of shares would dilute existing shareholders. Even though the company hasn't sold all $500 million yet, the mere possibility is enough to keep investors nervous.

Short sellers are also circling. According to recent exchange data, short interest in Intuitive Machines rose from 30.57 million to 34.79 million shares in the last reporting period. That means 26.53% of the company's publicly available float is now sold short. Based on average daily trading volume of 21.25 million shares, it would take short sellers about 1.64 days to cover their positions. That's not an extreme level, but it shows that bearish bets are building.

So where does that leave LUNR from a technical perspective? The long-term trend is still your friend. The stock is trading 32.6% above its 200-day simple moving average (SMA) of $18.03, and the moving averages are still in a bullish alignment—the 20-day SMA is above the 50-day, which is above the 200-day. That golden cross formation has been in place since November 2025, and it's still intact.

But the near-term picture has gotten ugly. Shares are now 29.5% below the 20-day SMA of $33.92 and 19.4% below the 50-day SMA of $29.70. That's a clear corrective phase. The MACD is below its signal line, and the histogram is negative, meaning buying pressure has faded. In plain English, the stock needs some fresh demand to get its mojo back.

The key level to watch is support around $23. That's where buyers have stepped in before, and it could be the line in the sand for bulls. If the stock can stabilize there and start moving back toward the 50-day SMA, that would be a sign that the pullback might be ending. A move back above the 50-day would be even more encouraging.

At the time of publication on Tuesday, Intuitive Machines shares were down 7.96% at $23.71, according to market data.