He is fixin' to challenge your authority. The Rooster Circle Wing Dance serves two purposes: his declaration of Rooster Love (however brief) towards a lady chicken, or a challenge to another rooster.
Walk towards him when he does that, as if he wasn't even there. Like you're going to walk through him. Deliberately, and calmly. He should turn away from you. If not, and he fluffs up his neck feathers, then you get to walk him backwards until he DOES turn away from you.