Reason being I'm presently drawing S/D as per your box 1, with the view that this is where the up move first started (and therefore PA should return).
This is drawn from the first pull back and not the reversal in box 2. The pull back could have continued down to form a lower low. Drawn in hindsight, but then we are looking for areas to watch the PA if/when it returns (and possible targets).
Good Trading