(If it seems crazy that I’m talking about the things that happen in Nightmare like they’re real, I’d like to point out that the film is partially inspired by true events. During the 1970s, director Wes Craven read an article in the L.A. Times about a group of Khmer refugees who were living in the United States, and whose children were having nightmares that disturbed them so badly, they refused to sleep. Some of them later died in their sleep, and it was as if they had known they would die if they didn’t stay awake. This story disturbed Craven to his core, and it later became his main inspiration for writing Nightmare. Craven has also said that he took inspiration for the film from certain Buddhist and Taoist ideas, and anyone who’s ever listened to the man talk will know that he actually believed in some kind of spirit world.)
The Nancy Thompson character is easily the best thing about this film; in fact, she’s the very best “Final Girl” since Laurie Strode in Halloween and Ellen Ripley in Alien (1979). Unlike Laurie, she becomes aware of her nemesis early in the film and she actively hunts him down; and unlike Ripley, she has no weapons aside from her own determination and resourcefulness. Nancy eventually discovers that if she holds on to something in her dreams while she’s waking up, she can bring it over to the real world. She decides to conduct this extremely dangerous experiment with Krueger, and when it proves successful, the tables are immediately turned. Freddy finds himself at Nancy’s mercy, suffering every form of abuse the teenager can throw at him; he even becomes afraid of her at one point. And considering just how slimy a character Freddy really is, it feels really good to see him get his comeuppance this way.
This humiliation of the antagonist is a recurring theme in many of Wes Craven’s films (including 1972’s The Last House on the Left, 1977’s The Hills Have Eyes, 1988’s The Serpent and the Rainbow, 1991’s The People Under the Stairs, and 1996’s Scream). There’s almost always a transition point in these movies where the surviving victims gain some kind of advantage over the villains, and the villains become blubbering, pathetic fools. I believe Craven’s intention here was to demonstrate that while evil may often seem very powerful and formidable, it only has as much power as we allow it to have. When we take that power back, evil is revealed for the frail and empty little thing that it really is. And in the original script for Nightmare on Elm Street, that is exactly what happens; Nancy defeats Freddy Krueger by taking back all the energy she’s put into him with her fear, and his spirit is dissolved back into the Void forever.
My only criticism of A Nightmare on Elm Street is the fact that its ending was sloppily changed at the last minute, and for purely commercial reasons. Nancy defeats Krueger, and all seems well; but then she realizes she’s actually having another nightmare, and the rotten bastard gets her after all. This ending always leaves a very bad taste in my mouth. They go through the entire movie developing this really likable character who’s noble and strong and who succeeds in defeating (and even humiliating) the villain; then they pull the rug out from under her at the last minute just to give the audience one last jump scare. Granted, it scared the hell out of me when I first saw this film as a kid; but as an adult who’s digested the rest of Wes Craven’s work, I can see just how “un-Cravenian” that ending really is. As it turns out, Craven had a major dispute with Nightmare’s producer, Robert Shaye, who wanted a scary ending to set the stage for a sequel. Craven eventually gave in to Shaye’s demands just so they could finish making the film. I think this was an unfortunate choice on Craven’s part, as it prevents Nightmare from being a truly perfect film; but the rest of the film holds up remarkably well, even after 30 years, so at least there’s that.
When you stop to think about it, sleep really is kind of a scary thing. If we hold to the Cartesian definition of existence (i.e., “I think, therefore I am”), we technically cease to “exist” for a while when we aren’t awake. Sure, our bodies are still there and our brains continue to function; but we don’t really “think” in the normal sense of the term, since we aren’t conscious. So in a way, we all become like Schrödinger’s Cat when we’re asleep; we’re neither alive nor dead, and we only collapse back into a solid state of reality when we regain our capacity for conscious self-reflection. We’re extremely vulnerable while we’re in this state (both physically and otherwise), and this is partly what the Egyptians were getting at with their tales about Ra being menaced by Apep in the Underworld each night. By attacking Ra, Apep isn’t just posing a cosmic threat against the Creator; it’s also posing a personal threat against all creatures that sleep and dream.
Nancy Thompson’s struggle with Freddy Krueger is a perfect representation of this principle, especially since it’s built upon fears that many cultures traditionally associate with sleep. Apep and Krueger are both astral monsters that try to kill living things while they regenerate (whether this means a sleeping Creator or a sleeping human). Both attempt to kill the future (whether by preventing the dawn or by murdering kids). Both thrive when the good do nothing (whether this is due to a paralyzing gaze or a conspiracy of silence). And both are easily overpowered once you learn how to see through their tricks (whether this is achieved by a badass Thunder God or a plucky suburban teenager). In this way, I consider the character of Nancy Thompson to be a true daughter and warrior of Set.

Incidentally, here is a procedure you can use to help you feel a little more like Nancy Thompson when you need it most. If you ever get scared when you’re in bed at night, give this procedure a shot. No Freddy Kruegers can hold a candle to the awesome power of He Before Whom the Sky Shakes.
Get a blank sheet of paper and some red paint. (If you don’t have any red paint, you can use a pen with red ink.) Draw a donkey that’s facing left, and write the word “EOEOE” in the shape of triangle on its neck. Then write “LERTHEMINO” on its back, and write “SABAOTH” on its breast. Finally, write the name “ABRASAX” directly beneath the donkey’s hooves, so that it looks as if the donkey is “walking” on the word. You don’t have to be a great artist; even the simplest and most child-like scribbling will do. (In fact, the simpler and more child-like you can manage, the better.) Just make absolutely sure that you draw the donkey facing to the left and that you write the voces magicae (“words of power”) exactly as I’ve said. When you’re finished, your painting or drawing should look like this:

Next, place this painting or drawing in a folder or something else in which it can stay unfolded and flat. (Under no circumstances should you fold it or crumple it.) You must never let any sunlight touch this image you’ve created; it must always be kept in darkness. Once you’ve placed it inside a folder, place it under the mattress of your bed. Preferably, it should be sandwiched between your mattress and your springboard. If the negative energy in your home seems to be centered on someone else in the house (e.g., a child), place the folder under his or her mattress instead. You can make one of these donkey images for each person who lives and sleeps in your home, if you like. Just follow the exact same procedure for each one. Make sure you place the images in areas where they can’t be seen, where no sunlight can touch them, and where they’re close to you and your loved ones while you sleep. Keep them there for at least seven days and nights; you can feel free to remove them after that amount of time has passed.