I believe that depending on the situation and how negative the values of SV and CV are it would be justified to select any of the situation. However, I would choose the option 2 where the SV is negative and the CV is positive. This is because having a Negative CV would mean going over budget as planned for the project. This can somehow be overcome in the initial phase by working extra hours on the project till it matches the deadline as set. Having a Negative CV would mean going over budget which would require a lot of process as it would mean increasing the budget of the project which means involving a lot of trouble. Like said above if the project is almost at its completion then having a negative SV would be a concern.