Does nginx go to the next host in upstream block, if previous host not available or doesn't exist?
upstream cache_cluster {
127.0.0.1:9000; //something on this port
127.0.0.1:11211; //memcached instance on this port
}
location {
//..some code here
memcached_pass cache_cluster;
error_page 404 502 504 = @something;
}