You hang out with bad neighbors and you get slammed.

Motorola Mobility Holdings

Apparently, Motorola Mobility Holdings – which Google is set to acquire for $12.5B – announced worse than expected financial results.

We know how it works.  Shoot first, ask questions later.  Apparently Google’s stock price is reflecting Motorola’s results.

Google’s earnings report mentions revenue at $7.29B.  And in case they ever want to buy something, they have 33.4B in case or equivalents available.

The market has reacted favorably to the news, sending the price up my more than 10% from yesterday’s closing price.

Are we in for good times?

While the stock and the overall market has performed relatively well since last fall’s low, the overall move up has lacked … shall we say, a little “ummhh”.

The rally off of the low looks more corrective in nature than anything else. The rallies and declines are overlapping with no decisive breaks to the upside or downside. Still, the price movement is favorable for building a base to higher prices. At the very least, it looks like the downside momentum has slowed.

The 38% Fibonacci retracement is near the $437 mark – a price Google is not far from. A price – on a closing basis – that corresponds with the support of March 2008.