Might this indicate a dog? (7)
I believe the answer is:
pointer
This clue is a double definition.
'might this indicate' is the first definition.
(something which points or indicates)
'a dog?' is the second definition.
(pointer is a kind of dog)
(Other definitions for pointer that I've seen before include "Arrow" , "Dog < or horse or" , "stick used for instruction?" , "Sign" , "helpful tip!" .)