FB and PYPL, both major companies and well-known names, announced earnings--as usual, after the market close--over the past two days. Both stocks lost about a quarter of their value on the reports.

I don't know either company well and I don't think I've ever owned either, so my take on the news--that in both cases the results didn't come as huge shockers--isn't worth much.

What is important, I think, is that the extent of the declines calls into question my guess that the S&P and NASDAQ made significant lows late last week. If not for the markets as a whole, at least for the kinds of techy stocks the ARK funds might hold. Classic lows tend to be highly emotional things, in which stock holders give in to the despair that has been building in their minds as their losses grow and sell without regard to price simply to gain emotional release.

When something like this happens--when greed has fully transmuted itself into fear--there's usually no energy left for the kind of selling in techy stocks that the price action of FB and PYPL have shown. All that would have happened last week. Rather, stocks usually rally for a few weeks before returning to "test" (as buckskin-jacketed market technicians would say) the previous lows.

In any event, this week's price action in FB and stocks like it suggest that there may still be more pain to come in this part of the market.