picot hem on little bag

this is a picot hem done at the top of a little bag knitted top down. i have knitted the first 6 rows, done the eyelet row, knitted the next 6 rows and then folded the top in at the eyelet row and knitted a stitch from the cast on and one from the bag to form the hem as you can see on the inside. the blue/green yarn is marking the beginning of the round. merino wool, # 6 dpn's.