The entire end sequence for me. Dennis is restless in bed and you hear weird sounds. There is also this eerie orange glow, prevalent in witch-type settings. The grandma was already suspect to me up to this point, and this was when the dread set in.
Then when Julie doesnt come back and disappears, and we see what looks to be a possessed Julie in the hallway behind Dennis as he grabs the camera (after only being missing for a few mins), the horrifying realisation of what is about to unfold is terrifying. From that point on, the ending is predictable. Dennis is another Micah-prototype, but here he is alone in a foreign setting with atleast 4 women of the cursed family. Once you see the symbols on the walls, and the old women (witches), you know it's a strong setting for the demons, he cant trust anyone, and he is doomed.
The rest of that sequence is just pure dread. You really feel the loneliness of Dennis in this situation, and feel really sorry for him.
I remember Katie mentioned a house burning down in the 1st movie, so at times I assumed that was Kristies promise with Toby, that she would burn the house down. But when they instead went to Grandmas house and I noticed the running time was almost up, then when Julie disappears, the absolute dread of Dennis's situation sets in.
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Other than that, the first time we see the ghost sheet is horrifying in a comical way. I almost didnt see it but just before the camera panned back I realised it wasnt meant to be there, and knew it would be behind the girl. When it just fell to the floor, that was very classily done, but I felt it also showed a sense of humour.
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