Joe Kinnear was left 'bitterly disappointed' after Blackburn beat Newcastle 3-0 at Ewood Park on Saturday.
Newcastle had the better of the first half - with Keith Andrews having to clear an Andrew Carroll header off the line in the 13th minute - but failed to make their superiority count with goals.
Rovers then took the lead when Benni McCarthy slotted home from the penalty spot on 61 minutes after being fouled by David Edgar, although it looked like he played for the spot-kick.
Jason Roberts then scored on 66 and 86 minutes to put the issue beyond doubt, while Nicky Butt was sent off for a second bookable offence in the 83rd minute, which again looked harsh.
Kinnear told Sky Sports afterwards that the penalty was the turning point, that his side were in total control of the game and looked the team likely to score.
Dominated
"We dominated the first half, we created chances and I am bitterly disappointed with the decision but these things go against you," he said.
"You know as well as I do, the turning point was definitely the penalty, whether it was a penalty or not I am not sure - but I think that it is the third one the same referee (Rob Styles) has given against us this season."
He agreed he was frustrated "because I could never see that result coming. But having said that, after the penalty, I thought we went a little bit ragged, everybody was upset on the pitch and off it and instead of keeping our concentration and getting on with the game, I think we started pushing forward, leaving gaps at the back."
He added he was disappointed for the 'incredible' supporters, who had come to support the team in their thousands.
"Nothing has changed as far as I am concerned - I said when I took over the club we are fighting a relegation battle and that is exactly what we are doing," he said.
"It is up to us to get ourselves out of this position that we are in. As I said when I came, the first game I saw was against Blackburn and at that particular time they were nine points ahead of us.
"Thankfully we are now two points ahead of them still but nevertheless it is a bitter pill to swallow, I am disappointed for the supporters immensely, my heart goes out to them," he said, believing his side did not give them anything in the second half.
"It has been a poor day for all of us, but the penalty was definitely the turning point."
Frustrated
He did not want to be drawn on the Butt sending-off, apart from "he was a bit frustrated", although he said the player "knows that he played the ball".
He added the one plus was the return of Joey Barton but he bemoaned his lack of fit players, saying the club are down to the bare bones.
"At the moment I know I am playing players half-fit and I know I shouldn't be doing that, but I am and I am chopping and changing, I am trying to do the best I possibly can and get so much time out of those players, but each time I put them on, I know that I am going to lose them for the following week so it really is a very difficult and tiring time for me.
"I know we can be a lot better than we have, I know the team's capable of beating teams and I know that we are going to stay up - so I can get that message across to the fans.
"But obviously they are frustrated - they are fantastic fans, they are crying out for success and at the moment, we are playing survival football and we are doing nothing more than that and obviously they expect more than that so I am aware of that and I am as sick as they are."