Despite a much-needed rally last week for the Bulls, active investors and traders still express concerns about potential outcomes for the Eurozone’s debt crisis.

The 490 point surge on the Dow Jones Industrial Average last Wednesday was nearly unprecedented and brought the index back above the key 12,000 level; the S&P 500 shot above the 1241 technical level.

But by Friday, the three major indices for U.S. equities closed flat.

Lots of head traders are hedge funds and major buyside institutions engaged in massive short covering as the rally took stocks higher. But some have yet to be convinced that Europe’s problems will be solved, despite the European Financial Stability Fund (EFSF) growing larger by the week.

One portfolio manager that Markets Media spoke with expressed his desire to allocate to cash and Treasuries and lower equity and foreign bond exposure. He and other PMs had mixed emotions on whether the euro will be able to survive as Europe’s main currency despite governments in Greece and Italy pushing forward with new austerity plans.

Some believe that European member states are incapable of taking drastic cuts to pensions and other fiscally responsible measures – steps that could haunt political governments for years amid backlash from unions and state employees.

If Europe cannot stick to a legitimate plan for reducing debt levels, the end of the European Union will come swiftly.