Even if the modulator was getting no vacuum (as in if the hose came off it),the TH350 will still upshift,but it'll have to be wound up to a lot higher rpms than usual--it might delay the shift into second gear until as high as 30 mph,and the upshift to third gear might not happen till speeds approach 50 mph,depending on the rear end gearing..and it will shift in much firmer than normally also..
You should be able to coax an upshift sooner,if you pull it down into low,and upshift it manually,if the modulator is at fault..(you'll notice no engine braking in second if you let off the throttle before it goes into third too,if the modulator is bad or not getting vacuum..
If your only getting reverse and first gear,it could be low on fluid,or the govenor gear may be stripped out,its only nylon that runs on a steel gear in the tail end of the trans..or,the valve inside the govenor may be stuck..
If the truck has just sat a long time,and was shifting OK previously,I would say its likely it is low on fluid,and or the govenor valve is stuck,or perhaps a sticking valve body piston in the valve body..kind of hard for the govenor gear to strip out when its parked..

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