When I play, I always use a rest stroke after a down stroke, which makes it easier for me to flow specific fragments boxed in red, such as the first beat grouping of measure 1 (as well as the last beat grouping of measure 2) resting during a hammer on or pull off, and also the last beat grouping of measure 1, doing a half rest stroke boxed in blue before the slide to catch the double down (this also occurs on the third beat grouping of measure 1).
I’ve been working hard to develop the rest stroke technique; it’s not for the faint of heart. However, the phrasing in Gypsy Jazz is amazing. When I do the rest stroke, I should be more clear as I try to mimic Stochelo Rosenberg’s picking motion with my wrist. So I wouldn’t necessarily do this with other techniques that I use when alternate/economy picking with an electric guitar.
Here’s the Soundslice link so you can play along, because I find it easier to read picking strokes and fingerings when the tuplet visibility is turned off.