1998 S90 Blinking yellow arrow. Trans feels like slipping

[carnoob]

Okay, so I really really hope that I didn't burn out my transmission because I may have done something foolish. I was driving along on my way home from work and all of the sudden an arrow starts flashing in my dash. the car didn't seem to drive any different so I said "heck with it" and drove it anyway. The more I drove it the more I realize that its becoming more and more sluggish. The rpms on the highway would get up past 3k only going like 60 then the safe mode would kick in and the transmission would disengage bringing me down to about 30 mph where it would drive again.
I would have to pull over and turn the car off let it sit for a while and then it would seem to drive fine...for a little while then the problem would persist and get worse. Oh ya and I could also smell transmission fluid. I don't know why it would do this. does anyone have any ideas on what I would need to do to fix this problem?

I got it scanned at auto zone p0733,p0740 and one more that I misplaced but Im pretty sure it was all similar

[madcyc]

Hi, your nuetral safety switch went bad or the speed senor on the tranny .If your lucky the tranyy is ok but chances are its shot.

[Pino01]

I agree it is the PNP switch on the transmission. You can buy genuine ones for around $140 and get your mechanic to fit it. Shouldn't take too long. I have a 2.9 litre 960 and the flashing light has been on for 4 years but thankfully the transmission works perfectly. I am just lucky. Get it fixed ASAP

[precopster]

With all that slipping going on the fluid will be contaminated with clutch material. My first stop would be to drop fluid twice and fill twice to give it a chance. Fluid is DexIII so it's cheap and easy to do apart from the hard to reach filler neck.

The PNP is located on the right side of the vehicle (passenger side in USA) and can be removed and cleaned in the same way as an 850 PNP.