1988 555b trans will not engage drained fluid , fluid milky, refilled, checked filter fluid still milky but not on dipstick,trans engages intermittently,any suggestions appr.
Oil floats on water.That may be why the dipstick is showing oil on it.
I know it costs more $$ to change it again but you should do it at least one more time.Use the cheap trans. fluid first then what you prefer.
Hope it helps.
I don't know what 'checked filter' means. Under the circumstances you should change the fluid and filter at least once more. Some of the oil in the system is trapped in the torque converter and is impossible to drain. Oil and Filter is cheaper than clutchpacks and transmission pump.