Yes, you can. You can program various conditions into the signal logic to make the signal go red. Conditions can include the settings for points, track sensors and other signals.

To make your signal go red if signal 103 is red: in the "Signal goes red when" section of the signal editor, add an entry "signal 103 is red". Remember that the number you need is the DCC accessory address of that signal.

The signal will not work correctly until LocoNet has been re-interrogated. Turn track power off then track power on to trigger the LocoNet "interrogate" process.