Brake question

[midlifecrisis]

OK, So obviously Im mechanically inclined enough to bleed my brakes, but I have no idea about the internals and valving that makes a hydraulic brake work (front).

 

So my question is this, as I am bleeding the brakes, as I squeeze the lever, my fluid level isnt dropping, nor is there any fluid coming out of the bleeder tube. So I covered the hole in the resevoir with my finger, and there is no suction from the squeezing and releasing of the lever at all, is the diaphragm shot or something, does it warrant fixing it, or do I just replace the system?

[NYUK]

the diaphragm may be shot. a mighty vac is the best way to bleed them, they are cheap at pep boys.