Higher demand for US government bonds weighs on the Nasdaq as it declines 0.17%

The Nasdaq gets off to a bad start this session by dropping 0.17% and trading at 11,400.

Investor risk appetite was subdued as stocks were sold off in favour of perceivably safer alternatives such as government bonds. Yields on one year US government debt fell from 4.9% to 4.3%.

The MACD is significantly below its signal line which suggests that the existing bearish sentiment is beginning to swing around toward a more bullish outlook. The Nasdaq's lower Bollinger Band® is at 11,100, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains.

Overall, looking at the technical analysis landscape, it seems the Nasdaq might start pointing upward in the short term.

In the meantime, negative performances are also seen in other markets, after ending yesterday's session at 7,069, ASX 200 lost 103.5 points and is trading around 6,965.5. Hang Seng is down to 19,200, losing 339.87 points, after closing at 19,540 in the preceding trading session. Dow Jones closed at 31,700 (down 0.57%).

The index has been trending lower for about a month. The Nasdaq is up 11.95% from the significant low of 10,200 it hit 2 months ago.