2000 Taurus No drive but reverse

Hey guys, today i am leaving work and pop my car into drive. Next thing i know there is a click and engine is reving. I pop it into R and it does engage. While sitting there waiting for the tow truck, i decided to check the trans oil, like i normally do to make sure its at proper levels. I pull the dipstick and its RED!! I look at the part that twists near on the stick and fluid is coated on it like the fluid was being splased on there. Any suggestions as to what the problems might be with my tranny?