The 'pointer' is the tip of the blue arrow on the pad. As for highlighting what's selected, that's prolly not a bad idea but is ironically a bit complicated to pull off without you seein a bunch of 'behind the scenes jank' or by making a whole set of custom sprites or something. I'll consider it as it would be a great source of feedback for the player but it'll be a post jam thing if we do.
But it's really great to hear you enjoyed it so!