Could funnel clouds develop over central Indiana the next two days?

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The answer is yes, but tornadoes are not expected.
The slow moving, churning of a low pressure overhead will create spin in the atmosphere and as we reach peak daytime heating, a few thunderstorms are possible. The cool, damp air and churning overhead may produce brief funnels.
 
These funnel clouds normally only dip a few hundred feet downward from the parent cloud, rotate
or spin, and last a few minutes before dissipating.
 
They very rarely touch the ground or pose a harmful threat. The atmospheric conditions do not support strong or damaging tornadoes. The upper level-low will migrate slowly east on Thursday taking rain chances with it and ending any additional threat of storms.