This is what im dealing with, its not the brake line and it doesnt look like its coming out of the axle. It doesnt smell like rear end fluid either. Im thinking its the shock

 

From the look it seems like brake or the shock there doesn't appear to be any on the wheel or tire so it's dripping from the shock IMO I didn't think a shock would have that much fluid in it but if you pull the shock you'll know real quick shocks arent very hard to pull off if you can push it by hand I say it's time for a new one, and check your brake and diff fluid for the next few days and make sure there not going down

 

Simple green the whole area and high pressure wash it off. Then you can see where the fluid is coming from. I don't think its the shock either, too much fluid. I say axle seal.

 

I don't think it's the shock either but from looking at the picture looks like the shock has couple of dents at the bottom near the bolt.

 

Upon further examination i noticed that the shock is cracked and thats where the leak is coming from. I ordered all new front and rear rancho RS 5000 off road shocks, figured i might as well replace them all. Thanks for your help guys!

 

Awesome that's for the update! Glad you solved your problem