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