Jeep trans problem

I always thought it was supposed to be running? Regardless, what concerns me other than the light being on is the look of the fluid, every time I've ever checked trans fluid it looked the same as the oil does on a dip stick, other than color of course. This looks like it's boiled perhaps?

does it smell burnt? or is it a dark reddish brown color? the color if the fluid will pretty much tell you what the condition the trans is in. if it has been overheated or the bands are toast it will burn the fluid. the only reasons i know that the light would come on is if it is low on fluid, or the trans temp is high. it could possibly be a loose connector, is it slipping?