While changing the rear brake pads on my 88 560 SEL, I accidentally removed the lower bolt on the caliper and some brake fluid leaked out. This is the rear driver side wheel.

I proceeded to put the new pads in, tightened the bolt I accidentally removed.

I replaced the cover of the brake fluid reservoir, started the car and pumped the brakes.

The are very very soft with a hissing sound and the Brake Light is on as well.

I removed the bleeder screw on the top of the caliper, depressed the brake pedal and some brake fluid came out. Tightened that screw right away and proceeded to pump the brakes again. With the reservoir cap CLOSED.

The brakes are still soft!!

PLEASE HELP !! What am I doing wrong or how can I correct this?

Thanks.