1987 190e 2.3-16V juttering
 

Here is the problem. As I am cruising along and have to slow down for a stop sign or stop light or for the grandma crossing the street, I let off the gas and let it coast for a little bit. As I do that, the car sometimes jerks back and forth a little. Not too violently but enough to get me angry. I am wondering if this could be caused by the O2 sensor, as the sensor light came on last week. Any ideas? I dont know how to describe it better.

I should also add that it doesnt do that if i coast in neutral. Any ideas?

There's an O2 sensor light on a 190e?

yup
 

right under the tach on the row of warning´lights on the right side.