thanks everyone for the replies. I checked his ears and they are clean and clear. I also haven't had him to the groomers yet so it wouldn't be that. I do however blow-dry his hair myself but I shut the bathroom door and he lays on my bathroom rug and i stand at a distance blowdrying him switching over to cool air every few minutes.
I also was freaked out this morning because as I was petting on him when my hubby left for work i felt a little knot. I turned on the light and lo and behold a tick was on his neck around the collar area. I got it out and checked him again and found another one on the underside of his neck in the collar area and I thought for sure I had checked him well last night. But I guess not well enough
I got both out put him in the bathroom shut the door and sprayed down the rest of my house and the outside of my house with Ortho bug spray. I guess I'll be keeping him indoors for a while to make sure we don't bring anymore ticks in the house. They freak me out! I've never had one on me before *knock on wood* and I checked all my kids and they don't have any thank goodness.
As for his red spots, they are lightening up a bit, but I put one of his shirts on that covers the places he's been scratching and that seems to help a little. I will try the creams you all suggested and maybe some benadryl if it gets worse.
Thanks again everyone for answers. If it doesn't go away in a couple days we'll just head to the vet to make sure everything is okay.