Multiple orange balls of light seen hovering southwest of the West Haven, CT beach near Long Island, NY between approximately Northport Bay and Port Jefferson Harbor. There were around six or seven lights in the sky that remained in the same area for the two hours we (four males, early-mid twenties) observed them, from around 21:00 to 23:00 on 17 July 2014.The lights kept fading in and out, as they rearranged themselves into different triangular patterns in the sky. They would intensify in brightness, then fade to darkness before reappearing in the same area. One of the lights was much higher and farther west than the group doing formations. This phenomena occurred for over one hour.At approximately 22:15 a low flying military jet aircraft, with the delta wings clearly visible, flew northbound over the West Haven beach, made a sharp left turn (right over our heads) and traveled westbound toward the lights seen over Long Island, following the CT coastline.A few minutes after the jet had disappeared beyond our line of sight, two red lights appearing to be attached to a single projectile materialized out of the lone light that was higher than the group. At first it appeared to be an air-to-ground missile or a plane crashing into the sea. The object was traveling extremely quickly downwards and to the left in a straight line at a 45° angle from the lone light. It was traveling at a speed much higher than freefall speed, and in a trajectory that can not be explained by something falling. It disappeared when it reached our visible horizon. There were no sounds or visuals indicating any explosion or impact. The projectile appeared for only a few seconds.After witnessing the air-to-surface projectile, the orbs of light in the sky began to travel eastbound as a group and the lone light traveled in the opposite direction. The lights faded, disappeared, and did not reappear. We left the beach at 23:00.