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Bouncing Speedometer..... Check Engine Light.

What's up Scotty???

Sounds like you need a new speed sensor. Not too expensive and easy to replace.
 
Just curious, my sons 92 XJ speedo quit working and once in a while only when accelerating hard it will bounce a couple times and then die again. Does that sound like the speed sensor or something else?
 
I had the same problem ('91 Cherokee) and found that the connection (no cable, has electronic sensor) was full of water. I sprayed it real good with contact cleaner, reinstalled, and has worked fine ever since.
 
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