The sway bar is connected to the lower strut housing, which does move up and down. The bracket I would put would make the sway bar follow the movement of the control arm at that point, and the control arm and axle should remain roughly parallel as the suspension travels, so the sway bar should not come any closer or farther from the axle than it is right there. That's what my metal picture of the situation tells me anyway.
Once the bracket's on and the strut is out I'll move the knuckle as far up and down as it will go to confirm clearance.