SK1 seems to be the output. But the fact you didn't recognized that and you only want a led to turn on (which you cannot connect to mains directly) it's wayyyy easier and safer to just buy a usb charger and used that to make a 5V version.
As has been said, the fact you do not understand this circuit tells us all that you should not try any circuit that uses mains except via a plug pack supply.
This whole circuit should be treated as HIGH voltage and not have any possible way of coming in contact with ANY part.