I talked to the vet this morning, she thinks that it is part her cleaning it and the healing process -- there is nothing coming out of it or his incision, we are going to watch it this week and put a little neosporine on it, we have an appointment on Saturday to check his incision so we are going to watch it and make sure it doesn't get any worse. He is still on an antibiotic after coming home from the hospital so that should catch any infection.