After many hours of googling I found this manual.
Looks like the ball is BS2. Now I am just plain mad. Took pictures of each part as I removed it so I don't know how it could be missing or how I could have lost it. Will be a miracle if I can find one local.
"BS2: Shuttles between SS2 oil and manual 2 oil to stroke the 1-2 shift valve and L/R modulator valve. If you leave it out, the transmission will shift from 1st to 4th. That is, when the computer commands 2nd it stays in 1st. When it commands 3rd, it goes to 4th (just like BS6 on 1996-98 model E4ODs). The problem is, if the SS2 is stuck off it’ll cause the same thing, so be careful. One more thing, depending on the condition of SS2, and well it flows, you may get a 1-3-4 shift."