On Monday, the Fast Money pros were closely watching the action in the market with chatter growing that the rally may be challenged.

At issue was a draft of an EU communiqué, which suggested overseas leaders are growing worried that austerity measures, like those imposed on Greece and Italy, risk stoking a recession and plunging the EU’s fragile economy into a downward spiral.

With the S&P up 4% year to date, the question becomes whether the market believes relative strength in the domestic economy and good earnings from US companies can trump the potential resurgence of Europe’s financial crisis.

What should you make of it? How should you position now?