Shares of athletic shoes and apparel player Foot Locker Inc. (FL - Get Report) are crashing on Friday, after the company announced a massive earnings miss for the second quarter.

The other shoe dropped this morning, after the company reported earnings of 62 cents a share, which missed Wall Street estimates of 90 cents a share, and revenue of $1.70 billion, versus estimates of $1.80 billion.

Total sales fell by 4.4% for the second quarter due largely in part to swings in forex prices, and gross margins dropped to 29.6% of sales from 33% a year ago. Comparable same-store sales dropped 6% versus a year ago, which marked the first time in over seven years that Foot Locker registered a negative comparable same-stores figure.

This disaster of a quarter for Foot Locker is dragging down the leading sports apparel and footwear players, like Under Armour Inc. (UA - Get Report) , which is trading off 3.8% to $15.65 a share, and Nike Inc. (NKE - Get Report) , which is falling 3.8% to $55.30 a share.

At last check, FL was plunging lower by 26% to $35 a share on heavy volume. Volume so far in Friday's trading session has already hit more than 23 million shares, which is well above its three-month average action of 4.06 million shares.

If you take a look at the chart for FL, you'll notice that this stock was already in a massive downtrend heading into the quarter, with shares falling off their April high of $77.36 to just under $45. During that downtrend, this stock was making mostly lower highs and lower lows, which is bearish technical price action.

This high-volume gap to the downside on Friday has now pushed shares of Foot Locker below some previous major support levels at $46.40 to $44.60 a share. This stock is now trending below all of its major moving averages. To illustrate that point, shares of Foot Locker are now trading around 30 points below its 200-day moving average of $65.25 a share.

Shares of Foot Locker have now traded down very close to its 2014 low of $34.49 a share, after it hit its intraday low of $34.55 a share. That's the big level that investors need to watch now. If this stock does not start to bounce and find support near $34.49 or just above it, the chart sets up for another leg down that will likely take FL back toward its next major support levels at $30 to around $28 a share.

Considering the horrible quarter, it's very likely that FL breaks below that level in the coming days or weeks, so longer-term investors should continue to remain on the sidelines and expect more downside unless that level does hold. If that level holds, then of course we could see a bounce, but the odds will drop dramatically if that bounce doesn't start soon.

The bottom line, shares of Foot Locker are clearly in distribution mode following a weak quarter and no signs from the company that a turnaround is in the cards anytime soon.

If that 2014 low of $34.49 doesn't hold, we're going to see more downside to $30 or much lower. Bullish investors should revisit this stock once it starts to stabilize and trend sideways for a bit, so you know the sellers are done. If a bounce does start, you know exactly where to place your stop -- at or around the $34.49 level.

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This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.