Can the speed sensor in the differential housing cause the ABS and BRAKE lights to come on?

I had to panic stop the other night, and immediately after both lights came on, and remained on.

1999 Dakota SLT 4x4, it only has rear wheel ABS

I poked at some things when I got home, brake fluid full, no loose connectors ect, looking for any obvious stuff.

After disconnecting the battery and waiting a while, the lights turned off first thing while rolling in reverse.

Well today they came on while backing a trailer in the grass.

I also noticed my speedometer acts differently. It works, but it isnt as responsive. It sweeps very slowly. I can come to a dead stop and it still will show 10mph until it finishes sweeping back to 0.

I thought I'd ask for info before buying sensors.
I might be wrong about the location of the speed sensor, if it's on the transfer case or diff.

Thanks for any help

 

Yep. That sensor not only is for ABS, it's also where the PCM gets its cue for the speedo.

 

Pull the sensor out. It might have had some sludge splash up and stick to it in the panic stop. It's magnetic, so any metal fines will stick to it and throw it off.