I'd imagine she sees Squall looking at the sky, and looks up herself to see what he's looking at. I don't know, I just find it more likely than the theory that it's a means of controlling him.
As for the flashbacks switching back and forth between Rinoa and Ultimecia, I don't know, it could be anything. That was when he first saw her, after all. Or Rinoa could be Ultimecia for all I know, I actually find that to be one of the less unbelievable theorys appearing around here.
In either case, I doubt the finger has anything to do with it.