While on vacation over the 4th of July weekend, I witnessed a UFO in the sky directly east of the Tamarron Resort near Durango, Colorado. The object appeared to be similar to a bioluminescent jelly fish. The object pulsated red and purple colors in no obvious pattern. At one point, it shot out an amber colored object. In my opinion, the object normally would have been invisible to the naked eye, however, because the sun was close to rising, the object was unable to fully compensate for the light and dark with camouflage.