A bad speed sensor on the trans causes no upshifts.a bad speed sensor on the rearend will make the brake and abs lights burn
From what I have read this sounds like a problem with the second speed sensor located on back at the rear axel on top of the differential. If the cable is loose or the sensor is bad it will cause the brake light to come on and the speedometer to act funny. There are two speed sensors...one in the transmission and the one on the differential. The second one is probably the problem.
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