Timing set questions

I just put this Cloyes timing set on a '66 poly 318. The marks on the gears are BOTH at the top, instead of crank mark up and cam mark down, facing each other. The gears I just took off were the same way. I always thought the marks were supposed to point at each other. The installation instructions also show them facing each other. Are these marks correct? Before I took it apart to swap the timing set, I verified TDC on #1, balancer mark on 0, and rotor pointing toward #1 intake bolt. Secondly, there is just as much slack, if not more, on this new chain as the old one. Is this slack normal, or do I have a defective timing set?

chain 1.jpg

chain 2.jpg