At midday Friday it appears my earlier predictions will come true.

In my webinar last Thursday I anticipated June fats would close by this Friday under $120.72, creating the 5th wave of an Elliot Wave pattern.

Barring a roaring rally into the close, in less than three hours that will materialize.

Since the market has already been down sharply this week, and coming back, it is possible that the fifth wave was made and completed in one weeks time.

First, if June closes under $120.72 today, then I will look for a close above $123.42 to confirm that the Wave 5 is complete. Until then, the Wave 5 has the potential to continue lower.

If this is the fifth wave in an Elliot Wave pattern, there is hope we could form a market bottom soon.

However, it will take a trade under this week's low on the June contract of $116.45 before I would consider extending the fifth wave.

Now, before you get overly excited about this, I do not anticipate a huge rally or bull market to begin. What I anticipate is the same thing I did two weeks ago -- and I was wrong then -- that the trade will be focused on regulating the basis between cash and June to a significantly narrower basis than at present.

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