Arrows were beaten 1-0 by the defending Absa Premiership champions at Princess Magogo Stadium on Wednesday.
The hosts had a penalty shout in the first half when Lerato Lamola looked to have been brought down as early fifth of the game started. Despite not getting the penalty, Larsen feels they should have done more to find the back of the net in the first period.
''I thought in the first half we pressed them high, they couldn't come out, we rattled them,'' Larsen told reporters after the game.
''That was the time we needed to score because we were dominating them, they had no rhythm. We disrupted that rhythm because of the way we pressed them. We ensured that neutralised that overload they usually have in the midfield, so tactically I thought the players got it spot on.
''So we very happy with that. But when you on top of the team like Sundowns you've got to put the ball in the back of the net and we didn't do that.
''But like i said, I'm looking beyond that. I'm looking at them [the players) having confidence after this performance moving forward.''
Sundowns got a chance before the break to take the lead and they made it count when Lebogang Maboe, showing their experience.
Since impressively beating Maritzburg United away from home in the first game of the season, Arrows have lost four in their last six matches. The pressure is slowly starting to pile on Larsen, who has to turn things around.
He'll be hoping for a victory when they host Chippa United at Princess Magogo Stadium on Saturday.