They are straight at 90*

 

It should be parallel with the frame.



Yours looks like it has to be pointing up like the links are way too long.

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I was flexed up in the picture i took...

 

your sway bar should be be within plus or minus 5 degrees parr to a flat surface..you can use a angle finder and adjust your links as needed but your problem most likely is your axle has shifted due to the lift..measure the difference from your frame to a consistent part of your tires,note the difference and adjust your track bar as needed..these two things should fix your problem...

 

Grind that down and repaint. I had to do that too.

 

That makes sense then....yeah either disconnect or take a grinder to it.

 

I would say that you were using the E-Disco (disconnected) while flexing and taking this picture.

With 37's and a 3.5 inch Max Travel lift (installed and adjusted correctly) the sway bar (even disconnected) should not hit that high on the frame.
You have adjustable links with the Max Travel, just shorten them up and see if you can adjust the rubbing/contact out of it.

Disclaimer; I am just guessing without actually seeing it.

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I Will adjust my links shorter tomorow.. I only have 1/4" to play with.. I dont know if it Will change anything since its just 1/4"..

The jeep is aligned perfecly..

I Will keep you posted.. Thanks for thé input guys

 

If you have a Rubicon and your links are too short for your shocks this WILL happen. So, leave them as long as necessary and don't worry about the angle.