Dancing Lights

I'm from Oregon, I'm retired and I live in Rosarito, Baja California, which is about 20 minutes south by car from Tijuana. Went out on my front porch at about 9:38 / 9:40-ish saw two lights in the sky over towards the east / north-east. They were / are dancing pretty good, (it's still on-going as I write this report at 10:15 pm). At first I thought it might be my eyes, I know there is a phenomena where your eye can deceive you into thinking something is moving when it's not. But I was soon disabused of that notion, lol. The light on the right was dancing / moving around far too much and changing it's brightness levels. Looked like it was trying to keep the same position but was failing. I also used the telephone line across the street as a reference level and both lights were changing quite a bit compared to it. Also, I looked at some obvious stars and my eye was not deceiving me, i.e. they just sat there in the same position. I looked back over at the UFO's and they both were moving quite a bit.
Then 100% confirmation - a small light dropped out of the big light on the right and went towards the ground. A little later another did the same. If that was not enough then a small light came up from the ground and it looked like it went into the big light on the right. Then the 'slam dunk' - a small light came up super fast from below and shot off into the sky at about a 50 degree angle, towards the south / (my right).
Not sure how far away from me they are. 10 miles ? I think over towards Tecate. Not sure but I think on the Mexican side of the border. I just checked right now at 10:22 pm, they're still out there dancing around. I'll be interested to see if there are any there reports of this.
I couldn't get any pictures, the camera in my phone was not picking it up.
Oh, last thing, the local dogs were not doing their usual barking, they were howling.