yellow malfunction light on.... won't shift into 3rd or drive

Your Transmission is in "Limp In" mode. The Transmission Control Module (TCM) continuously checks for electrical problems, mechanical problems, and some hydraulic problems. When a problem is sensed, the TCM stores a diagnostic trouble code. Some of these codes cause the transaxle to go into Limp-in or default mode. While in this mode, electrical power is taken away from the transaxle via the TCM, de-energizing the transmission control relay, and taking power from the solenoid pack. When this happens, the only transaxle mechanical functions are: Park and Neutral, Reverse and Second Gear. No upshifts or downshifts are possible. The position of the manual valve alone allows the three ranges that are available. Although vehicle performance
is seriously degraded while in this mode, it allows the owner to drive the vehicle in for service. Possible causes range from a simple Sensor Replacement to a Major Transmission Overhaul. Your local dealer can connect the Chrysler Scan Tool to read the diagnostic code as to what caused the TCM to activate the "Limp In Mode".