ADX Explained + S&P 500 Pattern Update | CHART THIS

Is the market preparing for its next major move, or are we still stuck in a consolidation phase? In today's CHART THIS, Dave Keller reviews the latest market action, explains why market breadth deserves close attention, and updates the technical picture for the S&P 500. He also answers viewer questions with a deep dive into the Average Directional Index (ADX)—how it measures trend strength, when it can improve your scanning process, and why it's most useful alongside other technical tools. Dave also discusses classical chart patterns, downside objectives, the importance of waiting for confirmation instead of anticipating reversals, and his process for researching new investment ideas. 🎓 Take Dave’s FREE course on behavioral investing: https://www.marketmisbehavior.com/fre... 📘 Check out Dave’s recommended reading list: https://www.marketmisbehavior.com/rea... 🎯 Upgrade your market awareness with Seeking Alpha Premium https://marketmisbehavior.com/seeking... 👉 Follow Dave on X: https://x.com/DKellerCMT 👉 Follow Dave on Bluesky: https://bsky.app/profile/dkellercmt.b... 👉 Follow Dave on Facebook:   / marketmisbehavior   👉 Follow Dave on Instagram:   / marketmisbehavior   ⏰ Timestamps 00:00 Welcome from New Hampshire and today's market overview 01:59 Market recap: bullish reversals, breadth, and sector rotation 03:55 Revisiting the recent "Choose Your Own Adventure" market scenarios 05:28 Intraday breadth update and what weakening participation means 07:02 Viewer question: What is ADX and how should investors use it? 10:33 Understanding ADX readings and identifying trending vs. sideways markets 12:15 Using ADX as a scanning tool for stronger technical setups 14:06 Head-and-shoulders patterns and measuring downside objectives 19:15 Morning Coffee Routine webcast preview and daily market framework 20:58 Updated outlook on the S&P 500: why Dave still sees a consolidation phase 24:13 Why waiting for confirmation leads to better investment decisions 27:26 Dave's process for researching new investment ideas and deciding when to commit capital The content in this presentation should not be considered as a recommendation to buy or sell any security. All information is intended for educational purposes only and in no way should be considered as investment advice. Some of the links in this description and in the video may be affiliate links, which means you pay nothing more and it helps me to make Market Misbehavior awesome! As an Amazon Associate, I earn from qualifying purchases. For full disclaimer, please see our website: https://www.marketmisbehavior.com/dis.... * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *