Imagine if we have a hollow bar magnet and we are trying to draw directions of magnetic field lines using a magnetic needle. The north of magnetic needle always points in the direction of the net magnetic field. Now, when we are inside the magnet, the north of the magnetic needle would point towards north and south towards the south - this is what is confusing me; this would mean the south of the magnetic needle remained attracted to the south and the north towards the north. Well, that predicts the direction of the magnetic field very well but it is quite opposite of the fundamental law of attraction. 
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it is not against the law of attraction. If you divide the bar magnet there will be a south pol opposite the N of your needle
