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NASDAQ futures posting gains

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NASDAQ futures (ND01M) are bidding higher by 19 points this morning to 1,942 and S&P futures (SP01M) have edged into the green and are up fractionally at 1,285. Dow futures aren't as fortunate right now and are trading down 24 points to 11,170. Fair value for the S&P 500 today is $1.02. Computer programs are set for buying at $2.37 and set for selling at $-0.23.

Bristol-Myers Squibb close to deal

The Wall Street Journal is reporting that Bristol-Myers Squibb (NYSE:BMY) is getting closer to making a deal to acquire the drug business of DuPont (NYSE:DD) for $7.5 to $8 billion. Bristol- Myers Squibb finished Tuesday's session at $57.94 and shares of DuPont closed at $46.70. PremierMarkets.com currently has two short positions profiled from May 23rd and May 31st for Bristol- Myers Squibb (BMY) with a stop at $59. This stock has been moving against bears in recent sessions since the first report that the drug giant might be buying the drug unit DuPont (DD). We had set our stop at $59 as a trade there would be a double top buy signal for BMY on its point/figure chart and its first since early April. The drug sector remains bullish and its bullish percent continues to hold at the 70% level with little sign of a reversal from this overbought level. PremierMarkets.com is starting to believe that there may be some rotation taking place from more overextended drug stocks into those like BMY that are trading in bases. PremierMarkets.com will continue to follow our profiled short in shares of BMY unless the stock trades $59. At that time, we would drop coverage of the trade. Our bearish target at this point remains $48.50.

Jeff Bailey
Senior Market Technician

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