This paper investigates fault detection of a roller bearing system using a wavelet denoising scheme and proper orthogonal value (POV) of an intrinsic mode function (IMF) covariance matrix. The IMF of the bearing vibration signal is obtained through empirical mode decomposition (EMD). The signal screening process in the wavelet domain eliminates noise-corrupted portions that may lead to inaccurate prognosis of bearing conditions. We segmented the denoised bearing signal into several intervals, and decomposed each of them into IMFs. The first IMF of each segment is collected to become a covariance matrix for calculating the POV. We show that covariance matrices from healthy and damaged bearings exhibit different POV profiles, which can be a damage-sensitive feature. We also illustrate the conventional approach of feature extraction, of observing the kurtosis value of the measured signal, to compare the functionality of the proposed technique. The study demonstrates the feasibility of wavelet-based de-noising, and shows through laboratory experiments that tracking the proper orthogonal values of the covariance matrix of the IMF can be an effective and reliable measure for monitoring bearing fault.