Yep, your water pump went south on you. As pointed out, likely a busted impeller.
When you get it replaced, keep your coolant level 1/2" above the MAX line to keep the sensitive level sensor happy.
Steve
98 Contour SE Sport 2.5 Duratec ATX The wifey's car
89 Taurus SHO - 246K miles
94 SHO ATX - 190K
1997 F-150 5.4L ATX - The Workhorse 150K.
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