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you need to   do the following speak with  wizard guild guy, you can talk to him at the  village / city center ~side note: you need to equip the allure amulet / necklace on  in order to start  the conversatiion, talking to him multi pull times will make you  progress the game as  you can combine the special reward lamp with  the special rod that can hold light, the reason why you haven't been able to progress is because most  locations and quest  are given before you get the requirements do to them , which means you gotta do side quest. the fortune teller is very vague, but her first prediction is that you will be fusing the lamp and light rod, it doesn't explain it clearly but once you speak to wizard who wants to learn about demons you will find out that  he's the key to combine things