Yes, coolant should actually be spraying from the bleeder screw if you remove it when warm.
With the car cold, remove the bleeder screw and pour coolant into the radiator until coolant flows out of the bleeder screw port on the thermostat housing. Then cap the bleeder port off. This assures that you have nothing but solid coolant from the radiator to the thermostat. Once you do this, start the car with the radiator cap off and let it get to operating temps (heater on full blast) When the thermostat opens, the coolant is going to be cycled thru the back of the motor and you'll need to keep topping off the radiator. When you don't see bubbles coming up to the neck of the radiator anymore, and the coolant is starting to flow out from the top, it's bled properly. Cap it off and make sure your hoses don't pressurize too much.
My issue turned out to be a bad radiator cap.