NKJV - 4 Praise Him, you heavens of heavens, And you waters above the heavens!
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I would interpret this as just making a reference similar to the account of creation in Genesis 1:7 when God formed the sky (firmament) and separated the waters that were under the firmament (oceans, rivers, etc.) from the waters that were above the firmament (clouds), which the psalmist is calling on to praise God, in the same way that other natural features such as hills and trees were also described as physically praising Him elsewhere in the Bible (Psalm 98:8 or Isaiah 55:12, for example).
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