I want it when it is in contact with the finger (above the player) this stops and if I move the finger that follows. That is to say that it only stops when it is in contact with the finger.
OK, there are probably other ways to do this but this works and is simple:
Here is the CAPX
This uses two sprites and the overlap to check position. The blue sprite moves fast to the position you are touching and the red sprite moves slower and stops when it overlaps the blue sprite. You can make that red sprite follow you all over the screen and it will stop without jiggling.
If you want the red sprite to move faster change the 5 to a higher number but 5 seems to look good.
You can set the blue sprite invisible if you want. The blue sprite must start overlapping the red sprite when you start the events or your red sprite will take off on its own. You could create another global variable trigger to prevent that if you want.