Sounds like a busted hose. I had a similar problem with my '68 and it would only squirt out when the wheel was at a certain position as the hoses bend as the control valve moves back and forth. Look carefully at the metal tube section of the high pressure hose, this is where mine let go and I've seen others let go here also. Poor design on Ford's part. The hose may also be getting caught or rubbing on something if it's not run or bent correctly.
Have someone else turn the wheel and watch, I wouldn't get my face in there but you should be able to see where it's leaking from.
P.S. Haledon, N.J.?
My father is from Haledon, he grew up there, and my grandfather lived there until moving to Florida in '85. I still have family in Totowa, Little Falls, and Maywood. When we go down there we usually get lunch at Pappy's on Union Boulevard or go down to Libby's in Paterson. Small world.

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1968 Mustang coupe, Acapulco Blue, 289 2v, C-4, Power Steering.
Hopefully a 1969 convertible or Sportsroof (non Mach or Boss) for next Mustang project
Trying to find my father's 1973 Mustang Grande he bought brand new. 3F04F126773 last known registration and title was in New Jersey, 1982.