In April I discussed how insider transactions were at bearish levels as insiders didn't appear to be sold on this rally. Now it appears their sentiment has changed as insider transaction levels have moved toward bullish levels and have stayed there for a few weeks straight.
This is a natural progression. The longer the rally in stocks progresses, the more sentiment improves. Not just with individual investors and fund managers, but corporate insiders. I would attribute the spike of selling in April to some pent up demand. Insiders needed to sell some stock but were waiting for better prices. We're now back to a more normal level, which now makes this indicator less useful. I view insider transactions as a useful indicator only when it spikes one way or the other.