Whenever I palm launch my Spark it drops down to about 3 feet off the ground. I can initiate palm control and raise it up but why is it dropping?

You have to wait until you see the front LED turned red then release it. If you release it when they are still green lights and it will drop.

Yup, what he said. I made the mistake of letting go too soon, gotta wait until the lights go red and you should be fine.

Sense that Spark is pulling up then release it. Do not hold to tight. Do not forget to install the propguard. Mind of your fingers.