Please explain a couple of things.. why are there no actions, and why do you have two identical events? (5 and 6). Also the 'every tick' has no effect there (I changed it to every 0.2 seconds to reduce the amount logging).
How do you know this is not working? I added a log message to event 6 which shows that 2 sprites are selected correctly when they both overlap that point. Finally, why are you using "is overlapping object" in event 2 and "is overlapping x, y" in event 6? Just for testing I presume.