Is conditional execution possible for SQL Server Agent job steps?
You can't configure the agent to act as you have described, but you might be able to achieve the desired result by building the logic into the code executed in steps 2, 3, and 4.  For instance you could use an IF statement at the start of step 2 to check the result of step 1, and only continue if the result was 1.  If the result is not 1, then it would move on to step 3, and so on.