Kevin Doyle's header in the 70th minute settled a pulsating encounter with the hosts twice throwing away the lead.
The result left Wolves still in the drop zone but level on points with Peterborough one place above.
"The game was unbelievable to watch for a neutral," said Saunders. "Both teams could have scored 10. We went for it. We had to win and you are standing on the side there hoping we can take the chances.
"If we keep winning I think the way other results are going we have a chance of getting in the play-offs. Everyone has got momentum going now and we had to win.
"If we can win again at Birmingham City on Monday we could be just four points away from 10th spot."
Birmingham will have had an extra 24 hours to prepare for that contest after
beating Crystal Palace 4-0 on Friday night.
"That's all wrong," Saunders added. "They played on Friday and it is not fair to have an extra day when it is such a short turnover. So I have got some crucial selection decisions ahead of me now."