Hmm, you've talked to quistis? Is she at the clocktower yet? If so, just leave and head south I think. You'll come to a gate (if it isn't south from the clocktower try. . . left?) and the parade will start.

Talking to caraway does sound about right though. Heck, talk to everyone. When quistis apollogizes to rinoa, you'll have a party change so you'll know when it's triggered.