Power steering fluid spraying out of the reservoir - Lots of little air bubbles in the fluid

After having some difficulty starting my 3500Auto on a cold morning I opened the bonnet. At the next attempt to start the motor loads of red power steering fluid began to spray forcefully out of the red top on the reservoir! It carried on spewing out fluid like a fountain for three or four minutes, reached a metre beyond the left wing!
After it peterd out I unscrewed the lid to check the remaining fluid level. I discovered that whats left is now full of lots of little air bubbles, like a raspberry milkshake! But it still exceeds the little mark on the short dipstick.
What has happened? Why? What should I do next?
 
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