The past couple of days there has been increased chatter about the willingness to restructure terms. A scenario that maybe on the table and I think would be an even bigger win for the markets, and possibly an economic win-win, is that Greece passes the austerity (gets the short-term money) and then EU/IMF/banks agree to a bond restructuring (in the very near-term).
(But this would rely on a work around the 'term' default as the rating agencies made their definitions quite clear. I have such disdain for these worthless agencies. They are truly irrelevant in modern real-time data finance.)
I think this scenario could cause the markets to rally to 1400-1450 or so.