Debutant DJ Campbell came off the bench to snatch a draw for Millwall with a header 10 minutes from time after second-half substitute Giles Coke had put the visitors ahead.
Shane Lowry and Coke both saw red late on for an altercation in the corner but Holloway insists he has seen an improvement in the attitude of his side that will warrant a change in fortune.
"I saw a little bit of nervousness which is understandable because of what has happened this season," he said.
"I saw a lack of understanding which comes from the team structure and team mentality and because they played with a different shape to what they have in the last four or five games.
"Unfortunately the way things are going we went one down but I was delighted because the spirit we have been talking about came, the togetherness came and we got excited about what we were doing.
"In any boxing match if you ask them you'll know if the other bloke was a bit better than you and they damn well know that so for me that is a moral victory.
"We need points but where this group would have failed a couple of weeks a with a lack of spirit they are raging with that energy they have and we are getting better."
Coke latched onto a through-ball on 69 minutes to round Stephen Bywater and give Wednesday the lead, but after Liam Feeney's header hit the post it was Campbell who snatched an equaliser.
Steve Morison lay injured inside the Owls' six-yard box when Campbell's goal came and Wednesday boss Stuart Gray insists he was left puzzled why referee Lee Probert didn't stop play.
"You go 1-0 up at a difficult place, Ian's second home game and they are working their socks off and the crowd are responding and the players are responding to him, but we weather the storm," said Gray.
"It wasn't a smash and grab, we had some decent chances and after Coke goes round their keeper and slots it in I am sat here talking about two points lost really.
"I am disappointed with the goal. Millwall were still in possession so there was no need for them to kick it out but I just felt the lad was interfering with Kirkland.
"I don't understand the rules because I thought it was a head injury so straight away the referee tends to blow and allow the physio on.
"They were chasing the game so I understand why they didn't kick the ball out but I think our players would have done."