US STOCKS-S&P 500 falls below closely watched threshold
* China's central bank cuts reserve requirement ratio
* U.S. crude rises more than 3 pct
* Valeant drops after delaying release of results
* Indexes down: Dow 0.63 pct, S&P 0.64 pct, Nasdaq 0.53 pct (Updates to U.S. afternoon trading)
By Noel Randewich
Feb 29 (Reuters) - Wall Street fell on Monday, breaking from its recent lockstep with oil prices as a recovery in recently beaten-down utilities stocks was offset by a drop in healthcare and energy shares.
U.S. indexes gave up early gains despite a 3 percent rally in U.S. oil prices. Stocks and oil have been strongly correlated in recent months as crude prices tanked to decade lows.
Following gains last week, technical trading dominated the action as the S&P 500 fell below its 50-day moving average. The index rose above the average on Thursday for the first time this year.
"If stocks rally up to a declining 50-day average, people will sell against that," said Michael Matousek, head trader at U.S. Global Investors Inc in San Antonio. "From a psychological standpoint, you have that overhead resistance at that level." Continuación...