Pump wiring

Just installed a new pump. Pentair SuperFlo 2 speed. The pump is running but only at one speed. From what I saw on the wiring diagram it said to connect the ground, red to 1 and black to 2. There is another wire capped off from the switch. Am I supposed to include that in the wiring or connect the black directly to it?
 
The switch is to select high or low speed. Here are some pictures. Thanks!
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