The HSI shows a GS indicator, which is above the plane in the shot. What does strike me as odd though is the vertical speed bug on the VSI. I'm guessing that the aircraft was already descending when it passed through the glideslope, which should have disengaged the Altitude Hold.
Like Falcon said, you need to be stable and level before intercepting the GS from below. For me, I like to be about 2000' above ground level with flaps and gear already out and speed just above approach speed. At that altitude, I'll generally come into the GS at around 5NM from the airport. Just before that, you'll find my AP set with Altitude Hold still on, but Heading already overridden by the Localizer. The Approach button will be lit, which means that as soon as I get into the glideslope the Altitude Hold will automatically drop out and the plane can begin the downward slide. Since my gear and flaps are already set, all I have to do is adjust the throttle so that I don't start speeding up. The AP will handle the trim, so when I cut out the autopilot somewhere between the middle and inner markers, all I should have to do is make minor adjustments with the stick and throttle until I flare.