On the type tools option bar, top left, click on the little triangle, then reset the tool.
If that does not fix it, suggest that you delete preferences:
Windows
Step 1. Hold down the Alt + Ctrl + Shift keys as you click on the icon to open Elements. When asked if you want to delete the settings file, say yes.
Step 2. Reset the preferences as above.
Step 3. Close Elements and let the file regenerate.
Macintosh
Step 1. Hold down the Opt + Cmd + Shift keys as you click on the icon to open Elements. When asked if you want to delete the settings file, say yes.
Step 2. Reset the preferences as above.
Step 3. Close Elements and let the file regenerate.
