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Problem Solved after 2 additional visits to dealer. It was the (EBCM) Electronic Brake Control Module which was out of calibration. All is well and perfect after 1 week. Thanks.:thumbsup:

Had 3 responses on the Avalanche forum all claiming it to be the wheel speed sensor. Will go to dealer next week and post my results ASAP.

Hello. New to this forum. Have an '07 Avalanche with the very same problem and not lowered. Traction control/Stability light comes on when turning at low speeds along with the pulsating of brakes (abs?). Did your dealer figure out the problem? Thanks