Drag with hitTestObject question

Is it possible while dragging a mc to have a conditional statement?

What I would like to do is drag a mc and if it overlaps another mc, the dragging mc changes frame. It will only change frames when it is dropped, I would like to have it change frame while still dragging.

Code:

---

stop();
function dragMe(e:MouseEvent):void {
        dragObject.startDrag(true);
        //does not have any effect
        if (dragObject.hitTestObject(hitObject)) {
                dragObject.gotoAndStop(2);
        } else {
                dragObject.gotoAndStop(1);
        }
}

dragObject.addEventListener(MouseEvent.MOUSE_DOWN, dragMe);

function dropMe(e:MouseEvent):void {
        //but this works fine
        if (dragObject.hitTestObject(hitObject)) {
                dragObject.stopDrag();
                dragObject.gotoAndStop(2);
        } else {
                dragObject.stopDrag();
                dragObject.gotoAndStop(1);
        }
}
dragObject.addEventListener(MouseEvent.MOUSE_UP, dropMe);

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You need to have an ENTER_FRAME event or you can use a MOUSE_MOVE event.

Thank You!

Both work fine!