To see which way you need to turn the distributor to retard the timing, just pull the cap and crank the engine to see which way the rotor spins. To retard the timing, turn the distributor in the same direction as rotor rotation. To advance the timing, turn it in the opposite direction of rotor rotation.
In other words, if the rotor spins CCW, turn the distributor CCW as well to retard the ignition timing.
Before you set the base timing, don't forget to disconnect the SPOUT connector. The 2.9L normally has 6 wires on the TFI module. Follow the dark green/yellow wire back from the distributor to find the spout connector. It will be past the large round gray conector that connects the TFI wiring to the harness. The spout connector should be a gray "shorting block" that breaks continuity between the TFI module and the computer to disable the electronic advance.
And do yourself a favor, set the base timing to the spec on the label under the hood with a timing light. Makes the process a lot easier and will make your computer work as it should.
1992 Ford Bronco
E4OD- B&M Stage 2 shift kit
Full 3" stainless Bassani Exhaust
32" BFG's/stock suspension
"No replacement for displacement."
"Our lugnuts require more torque than most Honda's produce!"