I was just reading my repair manual, (spare time and remember that the cam should be adjusted with the #1 piston Top dead center!
I hope you mean to adjust the cam (not the chain) at #1 TDC.
The cam chain should be adjusted with the bike warmed up 15° after TDC of #1:
Open the nut on the cam chain adjuster.
Turn the crankshaft until both valves on #1 are closed (rockers should be free). Turn the camshaft further until you see the advancer peg and line its left side with the timing mark on the engine case.
Now you should be able to turn the adjuster screw about 45°-90° clockwise. You should feel the resistance of the spring. The screw should snap back into the initial position if you let loose.
You should not be able to turn it counterclockwise more than maybe 5°.
Now let the screw turn itself back into position, hold it there with the screwdriver and tighten the nut.
It's all explained in the Workshop manual available at
http://www.sohc4.net/index.php/cb550/books-manuals-guides-2/Part 1 – Repair Procedures, Tools, Maintenance Operations