Continuity mistake: When Teddy's kids are lying dead on the grass, the position of the girl's arms keeps changing between shots.
Continuity mistake: During Teddy's interrogation of Bridget Kearns, she takes Teddy's notebook and writes something on the page to the left. Yet, when he shows the notebook to Chuck Aule, all of Bridget's writing is on the page to the right.
Continuity mistake: After Teddy takes his dead daughter's shoe off, its position changes between angles.
Chosen answer: I think the recurring blood comes from the blood of his wife when he killed her. there was a lot of blood you see, in his psychosis that means a lot and has taken over a large part of his hallucinations, just like Dachau camp. Yes, he did shoot his wife Dolores, in the belly. You can see it in the end of the movie.
lionhead