How did I set this target more than year ago? The 1.618x projection of the third wave (872.81 to 1370.49) was level of 1678. As described earlier in the previous posts (Market cycle and wave projecting part 1) this method proved to be relatively accurate in market peak setting. To be precise here I have counted the waves in details. Thus projecting the 3rd wave (from 1627.59 to 1806.55) gives target of area of 1806-1917 for the final wave 5, which coincides with the market peak. After recent sell off there is high probability that "the big" wave 5 of the market started 2009 has been completed.
What's next? The most worrying thing, however, is that not only analysis flashes signal. The market cycle theory confirms that as well. Historically the average phase lasts on average 5 years. Currently we are at the fifth year of the market, so stay focused.