Yeah, so I almost didn't even post about this, but here is the story. About a year ago I [thought] that I might be getting some sort of signals from my sister in law that she is attracted to me. Long story short was that a bunch of family was together and she sat next to me and put her legs up across mine. I was very uncomfortable with the gesture, but let her sit there for over an hour. There is never any physical contact between us unless we are hugging hello or hugging goodbye. At any rate I dismissed that situation as me reading too much into it. She also lived out of state at the time.
Fast forward to now and she lives about 20 minutes from me. Since she moved here she has been over to my house quite a bit. She usually greets me when I come in, unlike my wife, and almost always addresses me with a pet name. Between last year and now she always addressed me with a pet name and always joked with me when I saw her. Anyway, back to the present, so although we don't have physical contact she will come up to me and start punching my ribs or stomach (not too hard though). I usually just laugh that off or act like I'm going to hit back and she'll do a girly little scream and recoil. Again, I tried to chalk that up as just the way she is.
There have been other little things here and there like comments about how she likes my hair and such, but about two days ago she said "I need to stop being so sexy". For whatever reason I have a habit of posing with one arm up on the wall/doorway and the other in my pocket when I am talking to people. I was talking to her and my wife and she was quick to point out the posing and made a little joke about it. She then went to the basement and I said something like "you shouldn't be concerned about how I stand" and she said "well you need to stop being so sexy". I was a bit shocked that she said that because it was out loud and only one room away from my wife/ her sister.
Again, am I reading too much into this or might this be a problem in the future?