Wierd impulse light behavior on '91 190e 2.3
 

My check engine light is on and I have a '91 California model 190e 2.3 with a LED and button on my X11/4. When I press the button, nothing happens. However, when I touch the LED it flashes as I touch it, soft of like theres a short or loose connection somewhere. It's not the uniform code flash that one would expect, but rather it just sorta flickers as I touch the LED. Also, the Check Engine light sorta flickers from dim to bright randomly afterwards and the car runs worse.

Is there somthing I'm doing wrong here? From what I understand, I should be able to press the button down for about three seconds and then the LED will flash a code. Please let me know if this is not the correct procedure.