Is this timing mark correct (pic included)
 

Attempting to determine chain stretch,, aside from the fact that the PO retarded the ignition timing to the max,,, I can only assume that this is the proper location for aligning all the moving parts to check timing stretch,,, vehicle is 1988 190e 2.3

yep, that looks correct, what is the balancer mark at?

and the corresponding mark on the crank pullet,,,
 

I marked the spot with paint and kept turning the crank until the mark was on the bottom so I could snap a picture,,,

yes, those are correct

Am I interpreting the marking correctly when I say,,,

1) that the valve timing as shown in the first picture, as it relates to the second picture, i.e. the white paint spot marked at the timing mark is right on the money. No chain stretch at all, i.e. TDC