Can i lift rear wheels and run thru drive sequence to reset OBD ready codes?

I've completed a lot of drive cycles on these models yet I've never tried it like you are proposing. My guess is you will struggle to achieve it this way. The only way I was able to do it was to use the Volvo scanner to manually run some of the tests, then drive on local freeways to do the rest. It is hard to do, especially on these 1997 models.

Same as the last, but i'll add it may also set traction control and or anti lock brake codes since just one set of wheels will not be turning. Part of the drive cycle is also looking for percent of load on the engine. vehicle must be driven through two (2) complete OBD drive cycles without any fault codes stored in order to clear the I/M Readiness Status.