Halloween ending explained

What happens

Laurie survives, and Loomis shoots Michael, who falls from a balcony. But when Loomis looks over the edge, the body is gone. Michael was never truly stopped, and he is still somewhere in Haddonfield.

The last image

Over shots of the empty places Michael has been, we hear his breathing.

What it says

Michael is treated as a force, not a man, so he can't be neatly defeated. The film refuses relief on purpose: it wants the quiet streets to stay unsafe, and the sound of breathing to follow you out.