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I am working on my 70 and have no spark unless I twist the ignition switch back and forth while turning over the engine. Then I get an occasional spark. The switch tests good and will break the ground circuit when in the on position. I have also tried with the switch disconnected with zero difference. I also pulled the flywheel, checked, cleaned and adjusted the points to .014 and so they just are beginning to open when the ?f? is lined up with the timing mark. I replaced the spark plug and checked the voltage going to the coil. Everything seems to be in order except that the plug does not fire. Any help would be greatly appreciated.
 

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Does your ATC have a neutral safety switch? If so it may be causing your interrupted spark issue. Try to bypass the switch if you have one.
 

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1970 CT70, 2019 Super Cub 125, and five or six other basket cases
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I’d check for wiring diagrams. If it’s an intermittent issue with the on/off switch you may have corroded or bad contacts.
 
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