First, off, those "nightmare" sequences were the star of the show. They were very well put together and a good idea to only use a few frames to keep the scope small. They were definitely the payoff I was looking forward to after the gameplay loop. The cohesive art and overall sound sound effects were also great.
I did find that it took me a long time to figure out what I was actually doing, and I had to re-read the instructions a second time to get the hang of it, however once I knew what to do, it went a lot smoother. My main wish would have been to activate the "hauntings" at any given time, rather than in a specific order. My reason for this is that you end up having to retry observing certain areas many times to see if it's going to have anything happen, which might make people impatient (and sometimes I'd forget if I had checked a place in some "cycles"). Regardless, those are minor nitpicks that didn't make me want to stop from completing the game, so great job!