SELLING in Hang Seng Index futures continued unabated in relatively heavy volume after breaking a support on Thursday at 9,200 points. August futures plunged 100 points yesterday to break 9,000 for the first time since May 10, closing at 8,980. The contract gave a discount of 27 points to the cash index. For the week, the contract lost 400 points or 4.3 per cent. The September contract closed down 115 points at 8,985. Turnover overall was 19,094 contracts, with 18,917 in August and 177 in September. More falls are expected on Monday and in the week ahead as the equity market returns to a fairer value after a period of trading at historically high levels on a lot of hope and a scarcity of fundamental support. Selling in the past two days has been considerable as cash and futures turnover was heavy. Jardine Fleming said in index options: 'In the front month, overseas and local traders sold 8,600 and 8,800 puts.' Bears emerged in September, buying 8,000/9,000 put spreads and selling 9,000 calls. 'Besides the September 8,800/9,200 put spreads, 10,000 calls and 8,600 puts were traded actively,' the broker said. Implied volatility lifted to 21.5 per cent. It is up 2.5 percentage points since Monday. There were 2,916 lots traded. Open interest for Thursday saw 40,215 contracts in the August index future. In September, there were 771 contracts. In index options for August, there were 5,077 calls and 5,001 puts. In September, there were 3,194 calls and 4,677 puts. In December, there were 2,584 calls and 1,428 puts. In distant March, there were 63 calls and nine puts. The cash market is due to look for support at 8,800. If this fails, then 8,660 could be the next stopping point. At these values, current price-earnings ratio dropped to 11.9 times instead of the 13 times at the beginning of the week. In the prospective earnings valuation, the contraction in price-earnings ratio is from about 11.5 times to 10.4. The retracement to these levels, and possibly lower, is seen by some fundamental analysts as an extremely healthy correction.