Overlay/decals (Construct's equivalent.)

I have yet to find how to do this in construct and would like to know if anyone else has an idea on how to do this.

What I want to do is make an Sprite that's visibility is controlled by if its over another sprite as so.

Ex the blue square would be what i want to decal.

<img src="http://img836.imageshack.us/img836/3761/examplev.jpg">

How would I go about doing this? Thanks in advance.

Filters, more specifically masks.

Filters, more specifically masks.

I'm sorry, but could you be more specific? I found how to apply a mask effect, however it seems to not have effect of what I needed. This seems to only modify the image below it and apply its transparency biased on the mask's transparency.

what I needed was something that could apply to another sprite like a decal or an overlay, so that it wouldn't lose its original texture.

I was able to make a "dirty" way of doing this However in the example you can see it would require a "mask" the size of the entire screen in any practical use.

http://www.mediafire.com/?1i8pcsabfy877a2

I was hoping to have an option that could be used multiple times on the same object such as splotches of paint when they hit a target. the paint shows up on the target sprite but the wall behind it is clean.