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AT fluid level changes on dipstick 200 1993

1992 240 wagon 120k cream-puff automatic transmission riddle :
Scenario: Go to work, highway drive, no problems. Drive home, stop for gas after 12 miles on the highway at 85 mph or so... Fill up, restart car and downshift light stays on. Drive home rest of the way, not on the highway (a little slower), no 4th and light on the whole way. Get home and check fuse, fine. Pull out dipstick to check fluid level and dipstick is bone dry. Panic, wipe clean, reinsert and re-check and fluid is just past the hot full mark (at the top of the plastic). Exhale, re-check, same high fluid level. Check dash light and it's out (and 4th is back). Fluid level cold is right between the cold high/low marks.

Sometimes 4th comes back after a few seconds when I'm back on the road. I've tried pushing the downshift button on the shifter, sometimes this seems to help, but I don't think that's the problem or solution.

Any ideas? Thanks!






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