BB read her first sign on Friday, while we were walking to school!
We were strolling down the street, and she pointed to the sign and said, "Beware of Dog!" All proud of herself, as she should be!
Of course it's possible she's recognizing the sign itself, and not necessarily (or separately) the words on the sign. But I don't think so. We don't have a dog, we don't know anybody who has that sign posted, and I don't have any recollection of ever reading that sign to her or having her encounter it. So although there might be context-oriented recognition going on, I'm betting she read her first words out of context!
She's read "I love you" and her name and some words in books that she has memorized, but to my knowledge this is the first spontaneous reading that she's done. Very cool!