Bright lights changing color and meandering around the night sky

We watched a very bright light, high in the sky, which changed colors from red to blue to green to orange, and which moved slowly in various patterns, up, down, sideways, zig zagging in a fairly tight radius, then was joined by another similar light that appeared out of nowhere, with the two lights circling around each other until one of them emitted what appeared to be an arch of light at the other, which then disappeared.  
One of the lights continued its lazy meandering and changing color until it finally disappeared below the tree line.  No sounds at all.  The sky was totally clear, don't recall seeing a moon that night. These lights were the brightest things in the sky.
The exact date might not be right, but it was a Friday in October, 1966.  I was 7 years old, and was with my parents, in our back yard, but remember all of this very clearly.