850 Blinking Arrow
 

I have a '95 850 turbo wagon and for the third time the blinking arrow came on. The first two times it came on when I was going up the hill and the engine was reving high, then this morning it came on just driving normal speed on the freeway. The transmission shifts fine except that it revs a little higher in gears, and when I reset (with going from park to L about 15 times) it shifts fine. Is this the PNP switch failure as I read from the previous posts or something else? If it is the PNP, where is it located and how do I change it?

It sounds like a failing PNP switch. You should be able to check the transmission codes on your car being yours is a 95. I know there is a write-up on VolvoSpeed.